Agreements & Lock-Ins
What to read before you sign
A coworking or managed office agreement is usually a licence to use space, not a lease of it. It is shorter than a commercial lease and easier to read - which is exactly why it gets skimmed.
Five clauses carry almost all of the financial risk. Read those closely, whatever else you skip.
The core commercials
- Seats or area licensed, and the exact location within the building
- Monthly rate, and what it includes
- Start date, term and renewal terms
- Charges billed separately, with amounts or a stated basis
Anything promised verbally - extra credits, a free month, parking - belongs in this section of the document. If it is not written, assume it does not exist.
Lock-in and notice period
Lock-in is the period you pay for regardless of use. Notice is the warning required before exit once lock-in ends. Confirm whether notice can run inside the lock-in period or only after it, because that difference is often two months of rent.
Security deposit and refund
Check the deposit amount, usually two to three months, and the refund timeline after exit. Confirm what can be deducted from it, and that normal wear is excluded from damage claims.
Escalation
Most agreements raise the rate annually. Check the percentage and the date it applies from. Over a three-year term, escalation matters more to the total than the small discount most negotiations focus on.
Exit, transfer and changes
Look for how seats can be added or reduced mid-term, whether the agreement can be transferred if the entity changes, and what happens if you stay past the end date. Holdover clauses often price those extra days well above the normal rate.