SHARED LEGAL OFFICE SPACE 101
Office space sharing takes place across all types businesses, industries and professional practices. A “shared” space will generally incorporate one or more dedicated rooms or workstations with the premises of a larger firm that gets rented on a full time basis.
With the small office space rental the “guest” tenant is generally allowed to share specific amenities provided by the “host” for their employees. The basics include conference room use, kitchen and lunch room, receptionist, and shared use of a copy/scan/fax machine.
Frequently the offices will be completely furnished. Most (but not all) offices will have a full time receptionist to meet and greet visitors. Electricity, air conditioning, cleaning, utilities etc. are provided as part of the rental. Optional items, depending on the host’s offering are:
- Cubicles (usually additional)
- Conference room use (usually by prior sign-up)
- Signage (identification on a case by case basis)
- Use of the phone system
- Telephone answering
- High speed internet
- File storage in common area
- Part time secretarial help
- Part time paralegal help
- Industry periodicals
- Shared kitchen with (usually) filtered water & coffee/tea
How To Find Legal Offices For Rent
The internet provides a lot of opportunities to find commercial office space in larger sizes, but is very limited with respect to finding individual offices for sublease in another law firm. Looking For Space provides a unique niche where lawyers looking for space can match their requirements to availabilities within the premises of a law firm that has extra offices to sublet.
It is always free to search our database - just enter your desired city and we will show you everything we have listed in that location. And, because our listings are all paid advertisements, there is very little stale content - because nobody wants to pay to list a space that isn't still available.
With our system you can reach out directly to the principal who is advertising the space in a "do it yourself" format. Alternately, you can present a reverse listing or "Offices Wanted" advertisement to the public and let those firms with extra rooms actually make contact with you (while you are initially anonymous). Take a look at the OFFICES WANTED section.
How much does shared office space cost?
There is great variation across the nation with respect to the monthly rent for occupancy in a shared space. It also varies greatly, city to city, for serviced office space in an executive suite or business center. The variables are:
- The size of the office and the number and configuration of the windows
- Term of lease (shorter being less expensive)
- Neatness of the space overall
- Size and business population of the central business district
- Proximity to transportation and amenities
- Building age, size and quality of construction and maintenance
- Views and light
- Multiple conference rooms (sometimes with hourly cap per month)
- Furnishings and the quality thereof
- Available copy/scan/fax and postage meter, included (with cap) or not
- Office supplies included or not
In Manhattan, for example, individual offices in the 120 sq. ft. range in a Class A building range from 2100 per month to 2900 per month. In a Class B building the difference is approximately 17.5% lower.
A Partner’s office in New York City is generally in excess of 175 sq. ft. and has at least 2 windows. In Class A buildings we see a rental range between $2900 and $3300 per month. If the office is a corner unit the range is $3200 - $4250 per month. These same rentals hold true for executive suites or business centers for their larger offices.
The approximate rentals indicated above take into account most of the bulleted items above. The primary factors are location, size and “curb appeal” overall. There is a great variety of office styles, each representing the sensibilities of the “host” and accordingly each having its own monthly rental range.
Segmented by industry on our website you can search for legal office space, financial office space, tech/media office space, legal suites, executive suites and small private office space.
3. What should you look for?
The environment you’re potentially moving into is for the most part, an unknown at the initial stage of your inquiry. You should always meet, and interview the partner or executive who is in charge of administering the office space. Alternately you should meet with the office manager or site manager. The personality of the person in charge will permeate the environment, and more than anything else you must assure yourself that the new environment will be conducive to your work style and your personal attributes.
This seems pretty obvious – but a lot of people skip this step. When you’ve narrowed down the possibilities to your “top 2” you should visit the space on a day when you can use the conference room for half an hour. Get settled and interpret the “vibe”, and then walk around the space a bit and observe the people and their habits – they could be your office mates in the immediate future and you have to like what you see and feel. If there are other subtenants (licensees) in the space I would ask the host’s permission to speak to one of them – and you can informally ask them about their experience renting space from the host.
When we show space to a tenant we always try to ask an impromptu question in the elevator. Just say – “so what is it like to be a tenant in this building?”. Usually you’ll get a glowing report – but occasionally you will learn about a significant defect in the building or its management that you would not have discovered until after you had moved in.
Observe the following as you walk around the premises:
Observe the following as you walk around the premises:
- Is there extra “stuff” in the common areas (paperwork & detritus), or is the environment kept neat? We favor the minimalistic option when it comes to the common areas.
- Take a peek into the offices as you walk through the space. Any hoarders? Loud talkers or conference calls with open doors? Spicy (fragrant) “at desk” diners? Pets? Gigglers and loud laughers?
- Usually you won’t find any of these things. We rent offices in a law firm and our place is generally quiet as a pin – but if there are issues in the space you’re considering, you should find out about it in advance, rather than after the fact.
For the most part, issues like these are handled appropriately between individuals that care about each other and want to follow the golden rule. But every once in awhile there will be an issue that needs a little outside supervision from the office manager or principal you dealt with to obtain the space.
Most people will say that this is just common sense – and in fact it is. What I need to stress to people who are doing this on their own and who don’t have a lot of experience with the conventions, is that you can’t be shy about asking important questions. It is not considered impolite and if you get all your questions answered, you won’t have any unexpected disappointments in the future. It is worth the effort to be a good detective when you are representing yourself. - Are there locks on the doors to the offices (if you need them). Likewise with the desk drawers and filing cabinets.
- Is the phone system modern? If you’re using the phone system you should find out if it includes updated features like message transcription to email. If it is included is there an additional charge for using it? Is phone answering service available (and if so what is its cost)?
- Does the internet connection have good bandwidth? You could even ask to do a speed test on an idle computer. Is there an option for you to upgrade to a higher speed if necessary? Don’t be embarrassed to ask these questions – it is for your own good. Caveat emptor!
- Verify that the office gets cleaned and the trash gets taken away nightly.
- Verify that you have key, card key or code pad access to the building and the space and your office – at all times.
- Understand the air conditioning system and hours of operation.
- Determine whether or not you’d be allowed to provide your own Internet if you wanted to?
- How are mail and packages handled?
- Is the contemplated transaction legal? Is the consent of the Landlord required? Will your name or company name be visible in the building directory?
The printable list below is a sample of various items you should ask about – and feel free to add your own specific needs (i.e. “Do you stock herbal tea?”). Print out the sheet to keep a record of the deal points for each potential transaction. If you are looking at multiple spaces it wouldn’t be a bad idea to take a picture of the reception area to help you remember what you’ve seen. After 3 inspections, things tend to jumble together.
LOOKINGFOR SPACE.com Office Inspection Fact Sheet PRINT FORM
| Date of Inspection: | |
| Toured With- (Contact Information): | |
| Address: | |
| Neighborhood: | |
| Floor/Suite: | |
| Premises:(Windowed offices, Interior offices, Cubes): | |
| Furniture: | |
| Monthly Rental: | |
| Additional Rent: | |
| Future Escalation: | |
| Start Date: | |
| End Date: | |
| Security Deposit: | |
| Conference Room(s): | |
| Phones: | |
| Internet: | |
| Reception Service: | |
| Phone Answering: | |
| Kitchen (Supplies & Beverages): | |
| Copy/Scan/Fax Postage Machine | |
| Air Conditioning & Heat: | |
| Mail & Package Handling: | |
| Signage: | |
| Lobby Directory: | |
| Landlord Consent Required? | |
| Furniture: | |
| File Storage Space: | |
| Building Amenities: | |
| Public Transportation / Parking: |
LICENSE OR SUBLEASE?
When sharing professional office space there are usually 2 options to memorialize and document the transaction. In New York City, we most commonlyv see office space “licenses” – which do not always require the consent of the Landlord, as opposed to subleases.
In NY, an office space license is a bit more pro-landlord in a court situation. That being said the principal benefit of the license is that it is a shorter and simpler document than a sublease and in many cases it is terminable by either party. Below you will find an example of an office space license which has been used by one of our NY advertisers. This document very clearly outlines the agreement between licensee and licensor, and all of the FF&E (furniture, fixtures & equipment) options, amenities, services, charges and rules are clearly spelled out in plain English. It is a very easy document to refer back to if there are any questions in the future.
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SAMPLE LICENSE FORMAT PROVIDED AS AN EXAMPLE FOR DISCUSSION PURPOSES ONLY. WE ARE NOT ATTORNEYS. THIS WAS NOT PREPARED BY AN ATTORNEY. WE ARE NOT SUGGESTING ANY USE OF THIS FORM.
The example below illustrates the level of detail that it is possible to achieve with a simple agreement. It covers all of the obligations and options agreed to for both sides of the transaction.
Sample license agreement text
When sharing professional office space there are usually 2 options to memorialize and document the transaction. In New York City, we most commonlyv see office space “licenses” – which do not always require the consent of the Landlord, as opposed to subleases.
In NY, an office space license is a bit more pro-landlord in a court situation. That being said the principal benefit of the license is that it is a shorter and simpler document than a sublease and in many cases it is terminable by either party. Below you will find an example of an office space license which has been used by one of our NY advertisers. This document very clearly outlines the agreement between licensee and licensor, and all of the FF&E (furniture, fixtures & equipment) options, amenities, services, charges and rules are clearly spelled out in plain English. It is a very easy document to refer back to if there are any questions in the future.
SAMPLE LICENSE FORMAT PROVIDED AS AN EXAMPLE FOR DISCUSSION PURPOSES ONLY. WE ARE NOT ATTORNEYS. THIS WAS NOT PREPARED BY AN ATTORNEY. WE ARE NOT SUGGESTING ANY USE OF THIS FORM.
The example below illustrates the level of detail that it is possible to achieve with a simple agreement. It covers all of the obligations and options agreed to for both sides of the transaction.
sample license agreement text
THIS LICENSE AGREEMENT (the "Agreement") is made and entered into as of the ____________________ by and between ____________________ , a ____________________based Corporation ("Licensor") and ____________________, a ____________________Corporation/Firm("Licensee").
RECITALS
Licensor owns and conducts operations in the property located at ____________________, _____ Floor, ____________________, ________________________________________ known as the ___________________Building (the "Building").
Licensee (who currently resides at ____________________desires to utilize certain office space within the _____Floor of the Building and Licensor is willing to grant Licensee a license to do so, upon the terms and conditions contained herein.
NOW THEREFORE, for good and valuable consideration, and intending to be legally bound hereby, the parties hereby agree as follows.
Grant of License: Licensor hereby grants to Licensee a license (the "License") to enter into and utilize Room (Office) #_____ (consisting of _____square feet, facing_____Street), and Workstation "_____" (representing a one-person workstation) on the _____Floor of the Building ("EXHIBIT A" — Office & Workstation Floor Plan ________________) — the "Licensed Premises" for general office use, as the case may be, and for no other purpose, and together with Licensor and its employees and invitees, and other licensees of the Building, and subject to scheduling by the manager of the Building. Building access is granted "24/7/365" (subject to change by Building Management) and in addition to the "Licensed Premises" Licensee is granted usage of the following common areas: Reception Area, Conference Rooms ("up to_____hours per month, by appointment and based on availability"), Mail Room, Pantry, Lunch Room and Restrooms.
Condition of Licensed Premises: Licensor will deliver the Licensed Premises in its present "as is" condition — Office #________ "unfurnished"; Workstation "A". "furnished" including I (one) lateral file 3 drawer (under the desk unit), I (one) desk chair and 1 (one) bookcase. Licensee shall make no alterations to the Licensed Premises without the prior written consent of Licensor and agrees to seek prior approval for the placement of all additional office furniture with regard to specifications (model, size and color for metal file cabinets) that Licensee intends to acquire, and place (visibly) within the office space.
Term/Termination: The term of this Agreement shall be ________ months, commencing on the date hereof and expiring on _____________; provided, however, that Licensor may terminate this Agreement upon ________days written notice in the event of a breach of this Agreement by Licensee, if this breach remains uncured for such 10 (ten) day notice period. Licensee shall then vacate the Licensed Premises and the Building on or before the effective date of the termination of this Agreement, and shall leave the Licensed Premises and the Furniture clean and in good order and condition. Any and all property issued to Licensee or its employees by Licensor (including, without limitation, identification badges and keys to the Licensed Premises) shall be returned to Licensor immediately upon the effective date of the termination of this Agreement.
In the event that Licensee terminates the License Agreement prior to the _____ month, the Service Retainer/Security Deposit, with this "Paragraph 7", will be retained by Licensor and applied towards any License Fee(s) owed for the remainder of the License Agreement.
License Fee/Expenses: In exchange for the License, Licensee shall pay to Licensor a Fee in the amount of $______________per month, which shall be paid in advance on the first dayof each month. Licensee agrees to an increaseof the annual License Fee by ______% per annum (effective on the _____ of _____________each year after the first year) to cover the annual cost increase of Licensor's overall operating expenses including, but not limited to, license fees, real estate taxes, general office supplies, electricity, and service contracts.
License Fee Commencement: subject to the payment of theService Retainer/Security Deposit(Paragraph #7) and the first month's License Fee (Paragraph #4) along with the submission of an executed License agreement _____________. If all terms are met Licensee shall have prior access to move-in and S e t up IT, etc.
License Extension:Licensee shall have the option to extend the license for an additional ________years under all the same, continuing terms and conditions, subjectto Licensor'sapproval. Licensee must notify Licensor of its intention to extend the termof the license to__________, by electronic mail attachment. Licensor must respond, in writing, ___________________, confirming Licensor's agreement to a _________year extension of the License, by electronic mail attachment, in order for any term extension beyond the initial__________year term to become effective.
Security Deposit:
Licensee agrees to deposit $_____________ as security for Licensee's compliance with this License (amount due upon signing this agreement). The remaining and unused portion of the Service Retainer, if any, will be returned, without interest, upon the completion of the following conditions: (l) the expiration of the Term of this License, (2) the removal of Licensee's personal property from the office, (3) Licensee's payment in full of any and all License Fees and other fees due hereunder, and (4) the return to Licensor of all of the Building and Office keys and identification cards provided by Licensor.
Licensor agrees that if the Service Retainer has not been drawn upon, Licensee may use 50% of the Service Retainer equaling $___________as the ____month's License Fee payment (month of _____________). Thereafter — should Licensor and Licensee agree to a renewal of this License after its expiration on _____________ — Licensor agrees to accept the remaining funds of $_______________as a newly established Service Retainer.
Building Pass & Smart Card Access System: Licensor agrees to provide Licensee with 3 (three) building passes that will be programmed to the _______ floor smart card access system (Office #______ and Workstation '________" = I (one) permanent occupant each).
Telephone Usage: Licensor will equip the Licensed Premises (Office #_____ and Workstation _____), for Licensee's use, with a total of _____ VolP phone devices and _____direct line extension. Licensor will not charge Licensee for "domestic phone calls". Any "international phone calls" made by Licensee shall be invoiced separately, on a monthly basis, and be paid by Licensee upon receipt. Licensor agrees to the "porting" of Licensee's existing phone number (_________________) and Licensee may keep its "ported" phone number (or direct line extension) after the expiration of this License Agreement.
Internet/Wi-Fi Usage: Licensor agrees to provide Licensee's "Licensed Premises" with free of charge Internet and Wi-Fi service as part of the License Agreement. Included: "6 Mbps x 6 Mbps" for each, Office #______ and Workstation ____. Additional capacity can be provided at $_______ per each additional one (l) Mbps/ per month.
Use of Equipment: In connection with the License Licensor permits Licensee access, and usage, of the following equipment (the "Equipment"): Copier, Scanner, Printer, Facsimile and Shredder (Small & Large Mail Room), Hot Beverage Machine, Water Dispenser, Refrigerator, Dishwasher (Pantry). Licensee shall be solely responsible for any damage to any of the Equipment caused by Licensee or its employees and/or invitees. Subject to Licensor's approval, Licensee may store and use its own equipment ("Licensee's Equipment") at the Licensed Premises. Licensee shall at all times be solely responsible for Licensee's Equipment, and hereby forever releases Licensor from any and all liability related to any damage to or loss of Licensee's Equipment.
Additional Provisions Addendum: As part of this License Agreement and for the "Licensed Premises" Licensor agrees to provide, and include, the following services, and amenities, to Licensee at no extra charge:
- Furnished and decorated General Reception Area (the Reception Desk is not staffed on a full time basis!).
- Professional Office Manager.
- Directory (Licensee's name and company name in building lobby directory (not visible), Licensee's company name within the ______Floor reception area (visible).
- Hot Beverages & Water (Hot Beverage System and Water Cooler in Pantry).
- HVAC (plus Building and Supplemental Unit ____Floor).
- Electricity.
- Mail & Package Receipt & Distribution.
- Usage of Copier, Printer and Scanner (up to ___________ pages/month.
- Professional Shredding Service (normal business use).
- Office Cleaning & Garbage Collection (daily/overnight).
As part of this License Agreement and for the "Licensed Premises" Licensee agrees to an additional fee for the following service:
- Excess Internet use beyond capacity as described in "paragraph 10". International Phone Service.
- Excess Conference Usage (after _______hours per month) at $_____/hr for the 'Large Conference Room' and $____/hr for any of the 'Small Conference Rooms'.
- Excess copying, printing or scanning (more than 2,000 (Two Thousand) pages/month).
- Building Freight Elevator "after hour usage" (charges per overlease as billed by Bldg.Mgmt).
Parking: The License Agreement shall not include parking access for Licensee and Licensee's employees and/or invitees.
Access by Licensor: Licensor shall have free access to the Licensed Premises at all reasonable times (24 hour minimum notice except in case of emergencies), for the purpose of examining the Licensed Premises or making any alterations, repairs or improvements thereto which Licensor may deem necessary for the preservation of the Licensed Premises; provided, however, Licensor shall exercise reasonable efforts to avoid or minimize any interference with Licensee's business operations.
Confidentiality: Licensee and Licensor equally acknowledge and agree that any and all information obtained or received by Licensee regarding Licensor, respectively received by Licensor regarding Licensee, including, but not limited to, business strategy, service offerings, plans, projections, intellectual property, trade secrets (as defined under applicable law), and other financial and non-financial information, whether or not such information is marked "confidential" or described as confidential at the time of its disclosure, whether disclosed orally, in writing or by any other means, shall be deemed to be "confidential information" for purposes hereof. Licensee and Licensor shall not disclose the confidential information to any third party at any time during the term of this Agreement or thereafter.
Compliance with Laws, Rules and Policies: Licensee shall comply with all federal, state and local laws and shall abide by all rules and policies related to the Building adopted by Licensor (including, without limitation, rules and policies related to use and possession of identification badges, keys and other property that may be issued to Licensee in connection with the License), as the same may be revised from time to time.
Environmental: Licensee shall not use, manufacture, release, treat, store, dispose of or generate at, on or about the Building any Hazardous Substances (as hereinafter defined) without the consent of Licensor. "Hazardous Waste", or "Solid Waste" in any Environmental Law (as hereinafter defined), and oil and petroleum products, asbestos, polychlorinated biphenyls, urea formaldehyde, lead-based paint and biomedical waste. The term "Environmental Law" includes any federal, state and local law, statute, ordinance or regulation pertaining to health, industrial hygiene or the environmental conditions on, under or about the Building.
Insurance: Licensee shall, at its own expense, secure and maintain in full force and effect, the following insurance coverage:
- General liability insurance covering Licensee's use of the Licensed Premises, on an occurrence basis, with minimum limits of $-_________________ with respect to bodily injury or death to one person, and no less than $_____________________ with respect to any one accident, and not less than $_____________________ with respect to property damage; and
- Workers' compensation insurance covering all persons employed in connection with any work done on or about the Building.
Such insurance shall be written by companies in recognized financial standing which are authorized to engage in the insurance business in New York,and such insurance — of paragraph (a) — shall name
Licensor as an additional insured. Licensee shall deliver to Licensor promptly after the execution of this Agreement, a certificate of insurance satisfactory to Licensor, evidencing the insurance which is required to be maintained by Licensee pursuant to subparagraphs (a) and (b) above, and Licensee shall, within 30 (thirty) days prior to the expiration of any such insurance, deliver a certificate of insurance evidencing the renewal of such insurance.
Notices: Any notice required to be given by either party upon the other shall be in writing and shall be given by electronic mail attachment to Licensor at ________________.com (Attention: __________); and to Licensee at ________________.com (Attention: ________________); or at such other e-mail address as may be specified by either party from time to time, in writing, delivered to the other party in accordance with this "Paragraph 19".
Indemnification: Licensee shall be solely responsible for, and agrees to indemnify, defend and hold harmless Licensor and its Directors, officers, employees, agents, successors and assigns from and against, any and all damages, expenses, liabilities, demands, losses, claims, actions, judgments and costs of any kind including, without limitation, reasonable attorneys' fees (collectively, "Losses"), which Licensor may incur arising from or in any manner related to this Agreement or Licensee's exercise of the Licensee. The foregoing indemnity shall survive the termination of this Agreement.
Miscellaneous: This Agreement and License referenced therein: (a) contains the entire agreement between the parties relating to the subject matter hereof, and any modification shall be in writing and signed by the parties; (b) may not be assigned by Licensee; (c) shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; and (d) shall be governed by the laws of the State of ___________, and without regard to conflicts of law principles, jurisdiction and venue for any action or claim arising hereunder shall lie exclusively in the courts of _____________ County, and each party irrevocably consents to the personal and subject matter jurisdiction of said courts, and to service of process. The Recitals to this Agreement are incorporated by reference herein. IN WITNESS WHEREOF, the parties have executed this License Agreement as of the date first above written. Licensee __________________ Licensor:___________________
Title: _____________ Title: _____________ EIN:
EXHIBIT A Floor Plan Showing Location Of Office(s) and Workstation(s)
SUMMARY:This example includes options for the following:
- Conference room use cap
- Furniture description
- Start date, Expiration date
- Access
- Fees and cost for optional services
- Extension option
- Security deposit (and burn-down as prepaid license fees)
- Mutually agreed renewal option
- Access
- Internet service capacity and costs
- Phone system description and costs
- Available (included or not) equipment list
- General services provided and space conditions
- Parking
- Insurance
You should always use your own attorney to check all of the documents you intend to use to rent or license your new space. We maintain that you should never go into a new space on the basis of a verbal or handshake agreement, and that you always have proper documentation that clearly sets forth all of the terms and conditions the Host and Guest will be subject to.