Permitted Uses of Premises in Office Leases

An office lease typically has a section that sets forth the permitted uses of the leased space.

It’s to your advantage as the tenant to make this permitted use clause as broad as possible, even if your intended purpose is initially narrow. Because your business may grow and your plans may change, you want the flexibility to use the space in any reasonable, legal manner.

Also, a narrow permitted use clause can often serve as a restriction on your ability to assign or sublet the space.

So what’s the best permitted use clause? See if you can get the landlord to agree to something like the following:

Tenant is permitted to use the premises for any legal purpose or business.

If the landlord doesn’t go for that, at least spell out all of your expected or potential uses.

Click here for a sample Addendum to Real Estate Lease that benefits the tenant.

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