Office Lease Agreement
Option To Renew
In the initial tenancy, most landlords usually grant tenant an option to renew for a further term of similar duration at a rent either agreed upon by both parties or at the prevailing market rent rate at the time of renewal.
Lease renewal for 1 to 3 years is market practice. Caution is needed in drafting the revised rental clause for the option, usually worded “at a rate to be mutually agreed” or “at market rate” with no provision to settle any disputes over what fair rate it would be then.
Office Space Sub-lease
In most lease agreement, sub-letting of office premises is not allowed. However tenant may request or seek approval from Landlord for partial sub-letting. Alternatively, subject to Landlord’s approval, tenant could find a replacement tenant to take over the lease. This is on a case-by-case basis.