Key Takeaways

  • An office sharing agreement defines how shared office space is used, managed, and paid for between multiple professionals or businesses.
  • Agreements should clearly outline responsibilities, property ownership, cost sharing, insurance, liability, and withdrawal terms.
  • Additional considerations include data security, privacy, decision-making processes, maintenance, and use of common areas.
  • Understanding the differences between office sharing and coworking can help businesses choose the right arrangement.
  • Strong agreements include dispute resolution, compliance with lease terms, subleasing restrictions, and clear financial obligations.

An office sharing agreement template is a sample document that can help you write your own office sharing contract. The agreement should contain the names of everyone sharing the office, the date of the agreement, and a few other specifics related to office management.

What to Include in an Office Sharing Agreement

Office sharing agreements are common among groups of compatible professionals such as lawyers, website developers, and financial planners. Whatever the nature of your business arrangement, an office sharing agreement comes in handy when two or more professionals share the same office space. A strong office sharing agreement should include sections on:

  • Management: each party involved in the office sharing agreement should have a vote regarding office matters; one party may be elected the managing party to carry out daily office operations
  • Property: include a detailed list of property each party owns in the office along with the item's approximate value; list all jointly owned items including equipment, furnishings, and other materials
  • Clients: each party is responsible for their own clients
  • Accounts: specify that each party is responsible for their own client accounts, which includes receiving and deposit their own fees
  • Separateness: all parties agree not to represent one another in any way other than sharing an office space
  • Employees: since most shared offices have at least one receptionist and possibly other shared employees, the agreement should state what's expected of these employees in terms of confidentiality and how to communicate with clients
  • Withdrawal: if a party loses their license or professional certification, they are considered to have withdrawn from the office sharing agreement, and another professional may be added to the office space with the consent of existing parties
  • Insurance: each party should have their own liability insurance when required
  • Signatures: the agreement should end with a section for each party's signature and the date upon which the agreement was signed

Additional Key Clauses to Include

In addition to the essential elements already mentioned, a comprehensive office sharing agreement should also include the following provisions to prevent misunderstandings and legal disputes:

  • Decision-Making Procedures: Specify how operational decisions will be made, such as voting requirements, quorum, and tie-breaking methods. This is particularly important if there is no designated managing party or if decisions affect shared expenses or property.
  • Maintenance and Repairs: Clarify who is responsible for routine maintenance, repairs, and upgrades to common areas and shared equipment. If one party damages shared property, the agreement should address repair responsibilities and timelines.
  • Data Privacy and Security: Outline measures to protect sensitive information, especially if parties share Wi-Fi networks, printers, or storage devices. Many businesses use VPNs or separate networks to ensure confidentiality.
  • Use of Common Areas: Define how reception areas, kitchens, and meeting rooms can be used, how scheduling will work, and the standards of cleanliness and tidiness expected from each party.
  • Insurance and Liability: Beyond requiring liability insurance, specify the extent of each party’s liability in case of accidents in shared areas or damage caused by their clients or employees.
  • Dispute Resolution: Include a clause detailing how conflicts will be resolved—such as through mediation or arbitration—to avoid costly litigation.
  • Compliance with Lease Terms: If the master lease restricts subleasing or requires landlord approval for new occupants, ensure your office sharing agreement reflects these limitations.

How to Create an Office Sharing Agreement

It's essential to put your office sharing agreement in writing to avoid confusion in the future, especially if you share the space with another small business. Using an office sharing agreement template as a guide will help.

The agreement assumes all parties are listed on the property's master lease, but not all landlords allow that situation. In this case, one party must become the master tenant and sublet the additional spaces to colleagues. The agreement should include a provision stating the terms of the master lease.

A sample office sharing agreement might appear as follows:

This office sharing agreement is made between [the names of those sharing the space], who intend to share the office located at [the office address]. [Person 1] is a [professional title], [Person 2] is a [professional title], etc.

  1. We agree to share the office suite in order to save resources and money as well as benefit from one another's skills, knowledge, experience, and company.
  2. We will share the entire office suite at [address] as described in this office sharing agreement. [Names of all involved] will have their own private office space while [applicable names] will share a single office as described in the agreement.
  3. Only the people listed in this agreement are sharing the office space.
  4. No one may sublease an individual space without the others' consent.
  5. The lease on the office suite at [address] begins on [date] and has a term of [X number of] years. We plan to stay for the entire term of the lease. If anyone wishes to leave before then, that person is responsible for rent until a replacement tenant is found.
  6. Each party is a lessor under the lease of our landlord, [landlord's name], and we are jointly responsible for rent and other lease-related expenses.
  7. All of us will share the office's common areas, including the kitchen, reception area, conference room, and bathrooms.
  8. Each of us will have our own phone lines installed.
  9. We will have meetings the first [day of the week] each month to discuss office sharing concerns and vote on any issues.
  10. We all agree to keep common areas clean and to maintain our own private office supplies. We will cooperate to supply the bathrooms and kitchen and agree to clean up after ourselves.

Signed, [the names of all parties involved and the date].

Best Practices for Drafting and Managing the Agreement

Creating a robust office sharing agreement involves more than simply filling out a template. Consider the following best practices to ensure your agreement is practical, enforceable, and beneficial to all parties:

  1. Align with the Commercial Lease: Make sure the office sharing terms do not conflict with the building lease. The landlord is not a party to the office sharing agreement, so tenants must remain compliant with the lease independently.
  2. Plan for Future Changes: Anticipate scenarios like a party leaving early, expansion needs, or new partners joining. Include provisions for notice periods, cost adjustments, and consent requirements.
  3. Clarify Subleasing Rights: Prohibit subleasing or require unanimous consent to prevent unwanted occupants from entering the space.
  4. Define Cost-Sharing Methods: Costs for utilities, cleaning, internet, and supplies can be split equally, prorated by square footage, or based on usage. Outline the exact formula in the agreement.
  5. Address Termination and Exit Strategies: Detail how parties can exit the agreement before the lease ends, including notice periods, financial obligations, and procedures for finding replacement tenants.
  6. Document and Update Regularly: Schedule periodic reviews of the agreement to accommodate changes in operations, technology needs, or legal requirements.

Frequently Asked Questions

  1. What is the main purpose of an office sharing agreement?
    It sets out the terms for sharing office space, including how responsibilities, expenses, and liabilities are divided between the parties.
  2. How does office sharing differ from coworking?
    Office sharing typically involves long-term arrangements and fewer parties, while coworking is often short-term and managed by a third-party operator with flexible membership options
  3. Can an office sharing agreement override a commercial lease?
    No. The commercial lease governs the tenant-landlord relationship, and the office sharing agreement must comply with its terms
  4. Who is responsible if a client is injured in the shared office?
    Liability depends on the terms of the agreement, but each party should maintain their own liability insurance and outline responsibility for common areas
  5. What happens if one party wants to leave early?
    Most agreements require advance notice and continued rent payments until a replacement is found or the lease ends, but terms should be clearly spelled out in the agreement.

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