Office Space Lease Agreement Template for Philippines

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Key Requirements PROMPT example:

Office Space Lease Agreement

"I need an Office Space Lease Agreement for a tech startup leasing 500 square meters in Makati City, Philippines, with a 5-year term starting March 1, 2025, including provisions for expansion rights and a dedicated server room."

Document background
The Office Space Lease Agreement is a vital commercial contract used in the Philippine real estate market when a property owner (lessor) agrees to rent office space to a business tenant (lessee). This document is essential for any commercial office rental transaction in the Philippines, ensuring compliance with local property laws, building codes, and commercial regulations. It typically includes detailed terms about the premises, rental payments, maintenance obligations, and building services, while incorporating specific requirements under Philippine law such as tax provisions and local government regulations. The agreement serves to protect both parties' interests by clearly defining their rights and responsibilities, making it a fundamental document for businesses establishing or relocating their operations in Philippine commercial properties.
Suggested Sections

1. Parties: Identifies and provides full details of the Lessor and Lessee, including registration numbers and addresses

2. Background: Contextual information about the property and the parties' intention to enter into the lease

3. Definitions: Defines key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased office space, including floor area and location within the building

5. Lease Term: Duration of the lease, including commencement and expiration dates

6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment

7. Security Deposit and Advance Rent: Amount and terms of security deposit and advance rent requirements

8. Common Area Maintenance Charges: Details of additional charges for building maintenance and common areas

9. Utilities and Services: Responsibilities for utility connections, payments, and building services

10. Use of Premises: Permitted use of the office space and any restrictions

11. Maintenance and Repairs: Responsibilities of both parties regarding maintenance and repairs

12. Alterations and Improvements: Rules and procedures for making changes to the premises

13. Insurance: Required insurance coverage for both parties

14. Assignment and Subletting: Conditions under which the lease may be assigned or the premises sublet

15. Lessor's Covenants: Obligations and warranties of the property owner

16. Lessee's Covenants: Obligations and warranties of the tenant

17. Default and Remedies: Consequences and remedies for breach of agreement

18. Termination: Conditions and procedures for ending the lease

19. Governing Law: Specification of Philippine law as governing law

20. Dispute Resolution: Procedures for resolving disputes between parties

21. Notices: How formal communications between parties should be made

22. Miscellaneous Provisions: Including severability, entire agreement, and amendment procedures

Optional Sections

1. Fit-out Period: Terms for initial office customization period, used when premises are delivered in bare condition

2. Expansion Rights: Rights to lease additional space, included when tenant may need to expand

3. Renewal Option: Terms for lease renewal, included when parties agree to possible extension

4. Early Termination Rights: Conditions for early termination, included when this flexibility is negotiated

5. Parking: Allocation and terms of parking spaces, if included in the lease

6. Signage Rights: Terms for external or internal signage, if applicable

7. Force Majeure: Provisions for extraordinary events, increasingly common post-COVID

8. Green Building Provisions: Environmental compliance requirements, if building has green certification

9. Building Management Rules: Detailed building rules, if not covered in separate schedule

Suggested Schedules

1. Floor Plan: Detailed plan showing the exact office space being leased

2. Rent Schedule: Detailed breakdown of rent payments, especially if there are periodic increases

3. Building Rules and Regulations: Comprehensive rules governing the use of the building

4. Fit-out Guidelines: Technical specifications and procedures for office customization

5. Inventory of Fixtures: List of items included in the lease

6. Service Level Agreement: Details of building services and maintenance standards

7. Utility Rates and Calculations: Methodology for calculating utility charges

8. Handover and Return Conditions: Specifications for condition of premises at start and end of lease

9. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property Management

Corporate Services

Banking and Financial Services

Professional Services

Technology

Healthcare

Retail

Insurance

Manufacturing

Business Process Outsourcing

Telecommunications

Relevant Teams

Legal

Finance

Operations

Facilities Management

Administrative Services

Risk and Compliance

Corporate Real Estate

Procurement

Executive Leadership

Property Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Facilities Manager

Property Manager

Real Estate Director

Legal Counsel

Operations Manager

Office Manager

Procurement Manager

Corporate Services Manager

Building Manager

Real Estate Agent

Leasing Manager

Administrative Officer

Risk Manager

Compliance Officer

Finance Director

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary law governing contracts and property relations, including lease agreements. Contains provisions on the rights and obligations of lessors and lessees, contract formation, and general principles of contract law.
Rent Control Act of 2009 (Republic Act No. 9653): While primarily focused on residential properties, some principles may apply to commercial leases, particularly in mixed-use buildings.
National Building Code of the Philippines (Presidential Decree No. 1096): Establishes standards for building construction, maintenance, and safety requirements that affect commercial space leasing.
Local Government Code of 1991 (Republic Act No. 7160): Provides framework for local government units to regulate business operations and impose local taxes and permits relevant to commercial leases.
National Internal Revenue Code (NIRC): Governs taxation aspects of lease agreements, including VAT on rental payments and other tax obligations of both lessors and lessees.
Fire Code of the Philippines (Republic Act No. 9514): Establishes fire safety requirements and standards that must be complied with in commercial buildings and office spaces.
Environmental Laws (Various): Including Clean Air Act and other environmental regulations that may affect building operations and tenant obligations.
Accessibility Law (Batas Pambansa Blg. 344): Requires buildings to be accessible to persons with disabilities, affecting building design and modification requirements.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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