A medical office lease agreement template is one you use when you want to lease a space for medical purposes. As the Lessor, you’ll lease the premises to practicing physicians, a medical company, or another party. The express purpose of this lease is to use the office space for a reason within the medical industry.
Leased Office(s): (Property.Name)
Leased Address: (Property.Street) (Property.City) (Property.State) (Property.Zip)
Below, you’ll complete a summary section. This section will define each Party, the Rent, the execution date, Sublessee, leased premises, and other basic details. You can use this free medical office lease agreement template as is or create a new one using it as a sample.
This medical office lease agreement is entered into by and between [Lessor.FirstName] [Lessor.LastName] (“Lessor”) and [Lessee.FirstName] [Lessee.LastName] (“Lessee”). Lessor is a [Lessor.State] limited liability company whose address is at [Lessor.StreetAddress] [Lessor.City] [Lessor.PostalCode] . Lessee is a [Lessee.State] [Lessor.Company] (Company.Type), whose address is at [Lessee.StreetAddress] [Lessee.City] [Lessee.State] [Lessee.PostalCode] , entering this agreement on behalf of [Sublessee.Company] .
Note it’s important to define each company part of this agreement and their registered addresses. However, sometimes the tenant leases the premises on behalf of an umbrella company or subdivision. In this case, ensure you add the last bit of the above paragraph or remove it if it’s not applicable.
[Lessor.StreetAddress] [Lessor.City] [Lessor.State] [Lessor.PostalCode]
[Lessee.StreetAddress] [Lessee.City] [Lessee.State] [Lessee.PostalCode]
[Sublessee.StreetAddress] [Sublessee.City] [Sublessee.State] [Sublessee.PostalCode]
Lease Execution Date:
Lease Effective Date:
Suites/Office:
As per the section “Rent and Other Financial Obligations.
Leased Premises:
The Lessor leases the (Office.Name) detailed above to the Lessee for the express purposes of a medical office. The employees, invitees, and patients of the Lessee entering the premises are accountable to the terms of conduct in this lease.
This agreement, brought into play on (Effective.Date) (“Execution Date”) will become effective on (Effective.Date) (“Effective Date”). It will remain valid for (Written.Number) (Number) years and ends on (End.Date) (“End Date”).
Lessee is subject to the approval of the (State) Assembly or any local boards and organizations listed below:
(localBoard.One) (LocalBoard.Two) (LocalBoard.Three)Lessee can renew this agreement for (Written.Number) (Number) additional successive terms, provided the lease is in full force and effect, and the Lessee is not in default under its terms. Each additional term will last (Written.Number) (Number) year(s), with all the current terms and conditions in full force and effect.
Should the Lessee stay on the premises after the End Date without re-signing the agreement, it will be considered a temporary month-to-month lease. Such a temporary lease may not last more than (Written.Number) (Number) months.
During the final (Written.Number) (Number) months of the lease term, the Lessor can access the premises with a 24-hour written notice to show prospective tenants the Office.
While the Rent is listed above as part of the clinic space lease format, you must now give details. Consider payment terms, when the payment must be made, and any late fees. You should also consider how the Rent might change after a period. Most leases like these are for three to 10 years, so if it’s a long-term contract, you’ll have to consider how the price might change.
Commencing on the Effective Date and during the term of this agreement, the monthly Rent shall be $(Rent.Amount). The rental amount will be evaluated every (Number) years and may result in a new rental amount.
Note that you can change these terms as required. However, the late payment period is generally around the 5th day, but you can also make it up until the 20th, depending on your preference. Further, the standard interest you can apply for 30-day late payments is around 1% per month, depending on the state’s laws and regulations.
Lessee must pay the Rent by the 1st of each month, using payment methods (Payment.Method1) or (Payment.Method2). All payments must be in US dollars. Should the Lessor not receive the payment by the (Number)th of each month, a late fee of $(Amount) will apply. Further, Lessee will pay a (Number)% monthly interest on late payments of more than 30 days until the original payment and interest are settled.
The Lessor requires a security deposit of $(Amount) from the Lessee no later than the Effective Date. The Lessor shall repay the total or partial security deposit within 30 days of the End Date. Lessee will receive a detailed statement on any deductions on this amount. Deductions against the security amount are allowed for late Rent, unpaid fees, expenses beyond the standard wear and tear, and repair of damages caused by the negligence or operations of the Lessee.
Lessee agrees to comply with all federal, state, and local laws, regulations, ordinances, codes, statutes, and other legal requirements applicable to the medical Office. Should the premises require modifications to comply with the Americans with Disabilities Act or other laws due to the operations the Lessee carries out, the Lessee will cover all expenses solely.
If you’re leasing a few medical offices in a building instead of the entire building, this section is essential. It explains what you define as common areas and what rights you, any of your tenants, and the tenant have in those common areas.
Common areas include but are not limited to, any hallways, lobbies, windows, air shafts, stairways, elevators, driveways, restrooms, parking spaces, entrances, landscaped areas, walkways, and loading and unloading areas.
These areas have common usage between all Lessees in the building, and the Lessor has executive and exclusive control over them. At their own discretion, the Lessor can make changes to common areas, temporarily close common areas for maintenance, or other changes they deem appropriate.
Part of the clinic space lease format is ensuring you cover each Party’s duties. This includes who’s responsible for utilities, which is generally the tenant. It further states what maintenance is up to you and what’s up to the tenant.
Lessee is responsible for the utilities the Lessee uses per the office meter. Should the water and electricity be split among the Lessees of the building, the Lessor will provide detailed calculations to show the monthly utility bill.
The Lessor is responsible for maintaining a neat and sightly building exterior while maintaining the interior common areas the same. The Lessor shall keep, maintain, and repair any structures, foundations, roofs, or other building features to ensure the building is in good operation.
Should the Lessor provide any equipment, they will ensure routine maintenance to ensure it remains in good working order. The Lessee is prohibited from performing maintenance or repairs on the equipment provided by the Lessor. The Lessor understands they must provide prompt maintenance and repairs on this equipment in return.
The Lessee must maintain their Office(s) in good condition. Together with other Lessees, the Lessee is responsible for maintaining the common areas in good condition, even as the Lessor provides routine cleaning and repairs.
The Lessor is not responsible for repairing or replacing any feature, equipment, or other aspect of the building should the damage have occurred due to the negligence or malicious act of the Lessee. In these cases, the Lessee is solely responsible for replacing or repairing it to its previous condition.
Medical practitioners often handle hazardous materials. As such, this section ensures they dispose of it without affecting the premises.
The Lessee agrees not to produce, use, dispose of, or otherwise allow the release of hazardous materials, substances, or waste on the premises, land, or adjacent properties. Hazardous refers to any material, substance, or waste that federal, state, or local regulations, laws, or ordinance defines as dangerous, toxic, or hazardous.
The Lessee agrees to comply with all federal, state, and local laws surrounding hazardous materials. The Lessee will immediately notify the Lessor if they discover asbestos or asbestos-containing material. The Lessor will consult with an AHERA-certified asbestos abatement contractor to commence the removal, remediations, or other actions.
Should the Lessee generate any biomedical waste or operate equipment that can generate harmful radiation, they must dispose of or handle it per federal, state, and local laws. The appropriate modifications must be made at the sole expense of the Lessee to prevent the harmful radiation from affecting the rest of the building. The Lessee must dispose of biomedical and hazardous substances, waste, and materials at their own expense and ensure it is not present on the property.
Since the tenant is leasing the offices, they should hold and maintain insurance on the space they’re leasing and operations within it. Meanwhile, the Lessor will have insurance on the building and the general premises. This ensures the Lessor’s insurance doesn’t have to pay out for individual claims from Lessees.
The Lessor will keep the building and premises insured against loss or damages by fire. This insurance amount will equal the current replacement cost of the building. The Lessee will maintain comprehensive, general liability insurance to insure the activity of the Lessee against damage, loss, or liability for death or personal injury. This insurance must cover no less than $(Amount) per person and per claim and no less than $(Amount) for property damages. The Lessor must be named an additional insured on this policy or coverage.
The insurance amount can vary depending on your preference. However, usually, it’ll be around $1 million per person/claim and $2 million minimum for property damages. Also, ensure that you require insurance as per the state or local laws.