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An Office Sharing Agreement is a legally binding agreement between the owner or commercial tenant of an office space and another business. Office Sharing Agreements are used to licence out the use of spare office workstations. To find out more about sharing space for business purposes, reading Sharing space.
Use this Office Sharing Agreement:
when you own or have a lease of a commercial property
when you want to share workstations at the property with another business
when you want to share the space for a short period of time
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This Agreement is made on the date of last signature below between:
| Agreement | The agreement set out in this document including any agreed amendments. |
|---|---|
| Licence Fee | £ plus value added tax to be paid on the first working day of each week. |
| Licence Period | On and including until and including . |
| Property | The property at , , let to us under the Lease. |
| Space | Space for a maximum of workstation(s) within the Property and the right to use the kitchen and WCs in the Property. |
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This Office Sharing Agreement template covers:
details of the office provider (ie the business that is providing the office space)
the details of the sharer (ie the business that is renting the office space from the provider)
granting the right to use workstations without defining a specific area
the licence fee payable
interest on overdue payments
rights given to the sharer
terminating the Office Sharing Agreement
Rent and operating expenses paid for office space can be some of the most significant costs for a business. This Office Sharing Agreement allows you to bring in another business to share these costs by granting them the use of a workspace within your office space property.
If you have spare workstations in your office, you can licence them out to other businesses for useful and lucrative results. By making an Office Sharing Agreement you not only put the contractual relationship on formal footing, you can also specify details relating to the licence itself (eg what workstations can be used and for how long).
For more information, read Sharing space.
The Office Sharing Agreement is not a lease. Instead, it is a contractual licence. The key difference is that a licence does not grant rights over a defined and fixed area. This Agreement provides the sharer with a set number of workstations but does not specify their location. For more information, read Leases, licences and tenancies.
The 'provider' is the business that is granting the right to share the office space. The 'sharer' is the business sharing the office space. If there is more than one sharer, each must be named to ensure they remain jointly and severally liable under the Agreement. There can be a maximum of 4 sharers.
You may still be able to use an Office Sharing Agreement if you are the property’s commercial tenant (rather than its owner). However, you should carefully review your Commercial lease for any clauses that may prevent or restrict sharing the premises with another business.
If you need your commercial landlord’s consent to share the office space, this must be obtained before you sign the Office Sharing Agreement and allow the sharer to move onto the premises.
It is for you to decide whether you wish to attach a plan showing the workstations to the Office Sharing Agreement. However, if you do attach such a plan, make sure that it only shows the initial location of the workstations. This is because you want to retain the right to alter the location of workstations in order to ensure that the Agreement is in fact interpreted as a licence and not a lease.
The licence fee is the amount the sharer pays you for use of the space in your office. You will need to decide on the amount the sharer should pay you for the licensed space.
Under this Office Sharing Agreement, the licence fee can either be paid weekly or monthly. The Agreement also covers situations where the licence starts part-way through a month.
You should also bear in mind that, under this Agreement, the sharer must pay any Value Added Tax (VAT) due on the licence fee.
Whether the licence fee includes contributions for certain additional fees is for you to decide. If you want, the licence fee can be inclusive of the costs of services (eg internet, photocopying, and reception and secretarial services) and utility bills. Alternatively, you can charge a licence fee and require the sharer to make additional contributions towards the cost of any services and utilities.
This Office Sharing Agreement sets out the specific licence period for which it will run. However, the Agreement can be ended early in certain circumstances by one party providing the correct amount of notice.
This Office Sharing Agreement can be terminated (ie brought to an end) early (ie before the end of the licence period) in certain circumstances. This Agreement can be terminated by either party giving the other party one month’s notice in writing.
The Agreement can also be ended early by the provider:
by their giving one week’s notice, if the sharer breaches their obligations under the Agreement
by giving written notice, if the sharer suffers an insolvency event (eg liquidation or administration). The termination will have immediate effect
by giving written notice, if the property or the office space becomes unusable or inaccessible due to certain unforeseeable circumstances (eg because of a fire). The termination will have immediate effect
Making an Office Sharing Agreement online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.
To make your Office Sharing Agreement you will need the following information:
Party details
What are the details (ie legal structure, name and address) of the provider?
If the provider is a company, LLP or partnership, who will sign the Office Sharing Agreement on the provider’s behalf?
What are the details (eg legal structure, name and address) of the sharer?
If the provider is a company, LLP or partnership, who will sign the Agreement on the sharer’s behalf?
Office space
How many workstations will the sharer have?
Will a plan be attached to the Office Sharing Agreement showing which workstations the sharer will use?
What is the address of the office space?
Does the provider own or rent the space being let? If the provider is renting:
On what date were they granted the lease of the property?
Does the provider have the landlord's consent to share the office space?
Licence fee
Is the licence fee to be all-inclusive?
What is the licence period?
What is the licence fee amount?
Will the licence fee be paid to the provider on the first day of every month or every week? If the licence fee is paid monthly, will details about when the first payment is due be included? If so:
What is the amount of the first payment?
On what date is the first payment due?
What is the last date covered by the first payment?
Office Sharing Agreements enable businesses to licence out spare workstations in their offices. As a result, this Office Sharing Agreement template covers:
Between
The Office Sharing Agreement starts by clearly identifying the parties to the Agreement (ie the provider and the sharer).
Meanings
This section provides the meanings for certain defined terms used throughout the Office Sharing Agreement. For ease of identification, all defined terms are capitalised throughout the Agreement. Examples include ‘Licence Fee’, ‘Licence Period’ and ‘Space’.
Our responsibilities
This section sets out the provider’s responsibilities. Specifically, it covers the provider permitting the sharer to use the office space for the duration of the licence period.
Your responsibilities
This section sets out the sharer’s responsibilities in relation to the office space and workstation(s). These include:
keeping the space tidy
paying the licence fee and all applicable VAT
paying interest (4% above the Bank of England base rate) on any late payments of the licencing fee
vacating the office space at the end of the licence period or on the earlier termination of the Agreement
not blocking or interfering with the provider’s right of possession or control of the property
not causing any damage to the space or any furniture and equipment
Termination
This section details how the Office Sharing Agreement can be brought to an end before the end of the licence period.
This section also specifies the jurisdiction of the Agreement. This clarifies which country’s legal system must be used to resolve any disputes under the Agreement and is needed as the legal system of England and Wales and the legal system of Scotland differ.
If you want your Office Sharing Agreement to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review or change the Office Sharing Agreement for you, to make sure it complies with all relevant laws and meets your specific needs. Ask a lawyer for assistance.
Bear in mind that the Office Sharing Agreement is a licence
Leases grant exclusive possession of properties for a set time period, while licences grant personal rights in relation to the licensor’s (ie the tenant’s or owner’s) property. This means that leases confer more rights than licences.
This Office Sharing Agreement is designed to be used as a licence, with the provider being the licensor and the sharer being the licensee. By granting a licence, you ensure that the sharer does not gain the rights and protections awarded under a lease. As a result, it is important that you don’t do something that means that the Office Sharing Agreement is deemed to be a lease instead of a licence. For example, allowing the sharer the exclusive right to use the workspace.
For more information, see the FAQ ‘Is an Office Sharing Agreement a type of lease?’ and read Leases, licences and tenancies. If you have any questions do not hesitate to Ask a lawyer.
Understand when to seek advice from a lawyer
Ask a lawyer for advice:
on long-term arrangements
if your lease prevents you from sharing the property with anyone else
regarding workstations that cannot be moved to another space in the property
if this Office Sharing Agreement doesn’t meet your specific needs
