Common Lease Terms You Should Understand for Dental Office Rental

By  | 

It’s said that people don’t get what they ask for; they get what they negotiate. Therefore, if you’re in the process of renting an office space for your dental clinic, you need to negotiate. 


When you read through the papers, you will undoubtedly come across certain core terminology to the rental industry. To negotiate successfully, you must learn about this jargon. In this article, learn about some of the standard terms used in a dental office rental agreement.


Common Lease Terms in an Office Rental Agreement


Here are some of the terms you’re going to come across in the agreement. Make sure you’ve understood them all.


  • Premises – Premises is the official address of the building that you’re going to lease. If you’re renting a section, then it’s the specific suite number.
  • Use of Premises – Your type of business and how you’re going to utilize the property. It may also list the allowable use of space. 
  • Lessor – The name of the person of the company that is offering the lease. In other words, the lessor is the landlord and either owns or manages the property.
  • Lessee – This is you, the tenant, who is leasing the property for your dental clinic. You can either put your name or your clinic’s name.
  • Lease Term – The beginning and end date of the lease. You’re free to extend or end the contract mid-way (provided the lessor accepts it). But, give the expected dates.
  • Rental Square Feet – It is the amount of space you’re being charged by your landlord.
  • Usable Square Feet – It is the amount of space you’re able to use for your clinic.
  • Base Rent – The base rate is the minimum amount you’re charged per month. It is often expressed as either a flat fee or a per-square-foot rate.
  • Rent Adjustment – The amount by which the rent will increase over time, usually annually expressed either as a percentage or fixed cost. It is also known as COLA or cost of living adjustment.
  • BOMA – An abbreviation for Building Owners and Managers Association. It lists the standard for the management and development of the office building. BOMA also lays out the standard for energy consumption and operation. Visit BOMA for more information.
  • Load Factor – It is the metric that defines the space you pay for versus the area you actually use. Divide rentable square feet with usable square feet to get this number. 
  • Turnkey – This is the amount of space available for rent immediately with no Tenant Improvement (TI) required.
  • Landlord Access – It is the amount of notice that the lessor must provide before entering the property.
  • Holdover Rent – If you do not vacate the space once the contract ends, holdover rent is the increased amount of rent you’re obliged to pay.
  • Default – This lists the terms and conditions that both parties must comply with. If there’s a breach, default also lists the remedies available.


The property laws vary from state to state. So you need to research and learn about the laws applicable in your state and city. When looking for dental office rental space, you should work with reputed consultants. The right partnership will save you hours of effort and money. You can focus more on treating your patients rather than complying with the contract agreement.

You must be logged in to post a comment Login

Leave a Reply