📅 Updated: July 2025 ⏱ 4-minute read✍️ See The Space
- Understand the difference between Net and Gross leasable area
- Be aware of additional costs (management fee, electricity, etc.)
- Lease term and renewal priority
- Fit-out and reinstatement conditions
- Early termination clause
Finding the right workspace is only the first step. The most critical stage in protecting your company’s interests is negotiating and signing the lease agreement. A well-structured contract helps you avoid legal disputes and unexpected costs in the future.
Understanding the Actual Leased Area (Net vs. Gross)
In office real estate, there are two types of area measurements that tenants should clearly understand before signing a contract:
Net Area:
The actual usable space where your team places desks, equipment, and operates daily.
Gross Area:
The Net area plus a proportion of shared areas such as corridors, restrooms, and elevator lobbies.
⚠️ Tip: Always request the landlord to clearly specify the measurement method in the lease agreement to avoid paying for space that cannot be directly used.
Additional Costs Beyond the Base Rent
Many businesses focus only on the rental price per square meter but overlook the operational costs involved. Be sure to review:
Management Fee
Usually covers security, cleaning services, elevator maintenance, and shared building facilities.
Electricity and Air-Conditioning
Confirm whether air-conditioning is included during office hours or billed separately based on consumption.
After-Hours Charges
If your team frequently works overtime, negotiate the after-hours fee in advance.
Lease Term and Renewal Rights
Avoid putting your company in a difficult position when the lease expires. Key points to negotiate include:
Minimum Lease Term
Typically ranges from 2–3 years. Shorter leases often come with significantly higher rental rates.
Right of Renewal
The contract should include a renewal priority clause, allowing tenants to extend the lease at a competitive rate with 3–6 months’ prior notice.
Fit-Out and Reinstatement Conditions
This section is one of the most common causes of disputes at the end of a lease. Clarify the following from the beginning:
Fit-Out Period
Negotiate 15–30 days of rent-free fit-out time to complete interior construction before moving in.
Reinstatement Requirements
When the lease ends, do you need to return the space as a bare shell or in its original condition? Confirm whether partitions, ceilings, flooring, or installations must be removed.
Early Termination Clause
In business, unexpected situations can arise. Make sure the lease agreement provides a clear exit option for both parties:
Landlord Termination
How many months of compensation must the landlord pay, and how much notice is required?
Tenant Termination
Will the tenant lose the entire security deposit, or is there an option to terminate with advance notice?
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At See The Space, we don’t just help you find the right workspace — we also provide expert guidance throughout the leasing process so you can start your business journey with confidence and peace of mind.
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