Lease of part: office

by Practical Law Property

A standard document for a lease of part of an office building, which can be adapted for use as a headlease or an underlease. This standard document outlines an internal-only demise of the whole or part of one or more floors and includes optional wording to incorporate a separate storage area. The tenant's repair obligations can be structured as a full repairing and insuring (FRI) lease or qualified by a schedule of condition, offering significant flexibility. The landlord insures the building and recovers its costs through a service charge and this standard document contains optional provisions for addressing uninsured risks and implementing a service charge cap subject to annual review in line with the Retail Prices Index (RPI). It also provides optional clauses for an upwards-only open market rent review, which can include a cap and collar, and an optional break clause. Provisions for a tenant's guarantor and wording to facilitate its use as a renewal lease are also included.