Office Leasing FAQ: Answers to Common Questions

Do you have any questions about the office leasing process? We are here to help! Here we’ve collected a list of the most commonly asked questions from tenants beginning the office leasing process. If you’re new to office leasing, this FAQ also covers practical definitions and quick explanations you can use while touring. 

Why Lease with Boxer?

What are some of the competitive advantages of leasing with Boxer?

Boxer has suites in many sizes available immediately across 16 cities. We also offer competitive rental rates with a simple leasing process and flexible terms. You can also expand at any time during your lease term, even if you need to move to another building.

Boxer offers some of the most competitive rental rates in the market. We may occasionally offer additional incentives and expansion specials for existing tenants depending on the building. Contact Boxer today to inquire about any current specials.

Leasing Options & Flexibility

Do you offer short-term leases? What is the minimum lease term that I must commit to?

We offer both short-term and long-term leases.

During your lease term, it may be possible to relocate from a Boxer managed building to another Boxer managed building to a similar or larger space, subject to availability and the consent of ownership.

Tenants are able to downsize at the end of the lease term.

Tenant Improvements & Construction

Can I move a wall or add a glass door? Can you build a conference room in the suite?

Yes, you can! Boxer has in-house Space Planning and Construction teams that will work with you to configure a space to suit your business needs. These are called Tenant Improvements or TI’s. They refer to any modifications that need to be made to a space either prior or during occupancy. Time and cost to complete improvements depends on how extensive they are.

During construction modifications to an office space, walls, glass, outlets, and switches cannot be moved.

A T.I. (Tenant Improvement) is associated with a signed lease. This refers to improvements or upgrades to the premises prior to or during tenant occupancy, and may be paid for by the landlord or tenant. A M.R. (Move-in Ready) is associated with vacant space.

Pricing & Lease Types

What is included in the lease price?

Rent typically includes taxes, maintenance, and janitorial services. The tenant is responsible for telecom, parking charges, or other charges related to the tenant occupying the space. Some buildings are + Electric which means the tenant pays the base rent for the space and their pro-rata share of electricity. Different buildings offer different leases, so make sure you ask this question when touring workspaces. During the leasing process, some provisions are negotiable. For a concise full service lease definition, see the section below on Full Service Leases.

A full service lease includes taxes, insurance, common area maintenance, and electricity.

In a triple net lease (Net-Net-Net or NNN), the tenant agrees to pay all real estate taxes, building insurance, and common area maintenance on the property, in addition to any normal fees under the agreement such as rent and utilities. This outlines the NNN lease meaning in practical terms.

Escalations & CPI

What is CPI and how does it affect rent?

CPI stands for Consumer Price Index which is an Index published by the government to measure inflation. Boxer uses the CPI method of escalation. This means that rent will be adjusted by the percentage change in the level of the CPI between the base year and the level of the CPI on each annual anniversary for lease terms longer than 1 year. A CPI escalation is advantageous to the tenant because the Landlord has no control over the index as opposed to the operating expense escalation where the Landlord is responsible for controlling their operating expenses. It kicks in after the first year.

Costs, Payments & Move-In

What do I have to pay to get my keys today?

First month’s rent and security deposit must be paid to get your keys today.

Our leases request a security deposit and 1st month’s rent, which is standard when leasing any space.

Yes, you can move in mid-month; we would pro-rate the rent for that month.

The acceptance of premises is a document that indicates the tenant accepts the premises as is. The client signs it when they get their keys.

Brokers, Company Name & Application

Do I need a broker to lease an office?

Boxer has leasing agents for all of our buildings, so a broker isn’t necessary if you don’t have one. We also happily work with brokers if you have one.

Yes, that’s okay. Your company name does not have to match your tenant name.

Prospective tenants need to supply some form of government ID to the leasing representative. This is typically in the form of a driver’s license, passport, or state-issued ID.

Incentives & Specials

How much free rent is offered in our standard Expansion Special?

Boxer’s Expansion Special includes 2 months free on the expansion portions for each year of the lease term extension.

Lease Policies & Terms

What is the termination fee if I break my lease?

You are responsible for the entire contracted lease term and amount as noted on your lease. If you feel you have to move out before your lease term has expired, most leases offer the right to sublease. This is sometimes referred to as a commercial lease termination fee discussion; ask your representative for building-specific details.

The holdover percentage in the lease is 200%. Holdover refers to the time when tenants remain in the space following the lease expiration date.

An addendum includes additional items to the lease. For example, a signage addendum appends items when the lease is signed.

The “Right to Occupy” is a clause in a will that gives the beneficiary the right to occupy a property for a period of time. In our leases, the maximum number of days that can be offered are 30 days.

Space Features & Amenities

What amenities should you ask about when looking at space?

When considering a new space, you should ask about windows, any upgrades such as glass inserts or flooring, on-site delis, ATMs, and garage parking.

Definitions & Key Terms

What is the difference between useable and rentable square feet?

  • Usable square feet (USF) refers to the actual square footage.

  • Rentable square feet (RSF) is the usable square footage plus the common area factor. The common area factor includes the common areas of the building that all tenants use such as the restrooms, hallways, and elevators. This common area factor is proportionately distributed to the usable square feet (USF) of all spaces within the building. In short, this explains rentable vs usable square feet.

Contiguous space is a space that is adjacent, or next door.

SNDA stands for Subordination, Non-Disturbance and Attornment. Every lease is subject to the LL’s loan. This is the SNDA definition commonly referenced in commercial documents.

ROFR, or Right of First Refusal, means that the tenant with the ROFR has the first right to lease the space. The tenant with the ROFR is typically the one who most recently leased the space.

An effective rate is the actual rate you get after you take out all of the expenses of the lease.

Start Your Office Space Search

Visit our handy Office Space Search tool to find available suites in your area. Of course, feel free to talk to us directly by clicking the “Chat Live” button at the top of the web page if you have any additional questions. You can also visit our comprehensive leasing guide How to Rent an Office. Or if you need helpful explanations of industry-related terms, see our CRE Glossary.