Office Lease Agreement (Multi-Tenant Net Lease) (Pro-Tenant Medium Form)

by Practical Law Real Estate

A Standard Document that is a medium form lease agreement favoring the tenant for use in a multi-tenant office building. In this Standard Document, the tenant pays its proportionate share of real estate taxes and operating expenses as additional rent, an arrangement often known as a net lease or triple net lease. This Standard Document addresses critical aspects of the landlord-tenant relationship by providing tenant-favorable terms for repair and maintenance obligations, alterations, and the calculation of operating expenses, including significant exclusions and robust tenant audit rights. It outlines procedures for assignment and sublease, including permitted transfers that do not require landlord consent, and conditions the lease's subordination on the receipt of a Non-Disturbance Agreement. This Standard Document explores important tenant rights such as renewal options, rent abatement for service interruptions, and protections related to potential relocation by the landlord. While leases are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.