How to Prepare an Office Sharing Agreement

Many small businesses and entrepreneurs use commercial space to house their operations. But these workspaces can be expensive, especially for businesses just starting out. Business owners have a great economic way to take advantage of the benefits of an office location while cutting down on costs: office sharing.

If you want to share a commercial space with someone else, you should create a written office sharing agreement.

What Is an Office Sharing Agreement?

An "office sharing agreement" is a contract between two or more people or companies that agree to share a single workspace to carry out their business. The office sharing agreement details how the commercial space will be divided, what each occupant is responsible for, and how the expenses will be allocated.

When you lease a commercial space and share that space with others, you'll typically want to have both a commercial lease and an office sharing agreement. Both documents are legal agreements and are contractually binding.

A "commercial lease" is the agreement between the landlord and the tenant or tenants. The office sharing agreement is the agreement among the tenants. The landlord isn't bound to the terms of the office sharing agreement and isn't a party to that agreement. You'll need to make sure these agreements don't contradict each other. As long as the tenants fulfill their side of the lease with the landlord, the tenants are free to create their own rules for how the space is used.

When to Share an Office Space

If you're just starting out and your business doesn't have as much capital, you should consider sharing office space. Office sharing is a great third alternative to working from home or leasing your own individual space.

Sharing an office can be a great fit for business owners who:

• need a limited amount of space to do their work, and
• interact with customers primarily on an appointment basis (as opposed to being open to the general public during business hours like a store or restaurant).

Office sharing works particularly well for people who see clients or patients. It can be costly to maintain an office with a reception area (especially if it's staffed) and private meeting or treatment rooms, and sharing the expense makes it more affordable.

Sharing office space, for example, makes sense for many types of professionals, including doctors, lawyers, therapists, massage therapists, designers, acupuncturists, chiropractors, and financial planners. Many of these professionals do administrative work from home and need office space only for planned meetings.

What to Consider When Sharing an Office Space

When determining whether to share an office space, you need to keep several points in mind to create an ideal working environment.

Who to share the space with. It's best to share with others whose needs are similar to or mesh well with yours, often someone in the same or a similar profession. If you and those you share your office space with have the same goals and needs out of a space, then it becomes much easier to share resources.

Privacy. You'll, of course, have the most privacy if you lease your own space and don't office share. But most business owners need only a reasonable level of privacy and not absolute privacy. In many cases, you'll be able to occupy your own private room but might share some common areas like the reception area, breakroom, conference room, and printer room. Even with a shared conference room, you can expect not to be interrupted during your blocked-off meeting time. Unless your clients demand a high level of discretion or you'll be keeping highly sensitive or expensive tangibles, sharing an office space should be workable. For example, you can wait to discuss private matters with clients or business partners until you're behind closed doors and not in the hallway on the way to the conference room.

Data security. Sharing an office space can put the security of your data at risk. When you share a commercial space, you usually also share a single wifi network, community printers and copiers, and other technology infrastructure. Your devices could be discoverable to others, along with the information contained in them. You can help mitigate these risks by using your own wifi network or keeping a printer in your private office. But taking these steps typically reduces the benefits of office sharing in the first place. Evaluate the level of data security your business needs and research the products that can help you achieve your security requirements. Many companies use a virtual private network (VPN) for their internet connection, providing them with security and privacy on a public wifi network.

Legal risks. Sharing a space with others isn't without risks. If a customer is hurt in the reception area, who's responsible for their medical expenses? If one tenant damages the front door to the office space, does that tenant pay for it, and how long do they have to fix the door? Fortunately, you can address many of these scenarios and concerns in your office sharing agreement. For example, you can require everyone sharing the office to carry their own liability insurance and outline which party is responsible for which kinds of repairs.

Office Sharing vs. Coworking Spaces

When looking to share a commercial space, you can choose to sign an office-sharing agreement or buy a membership for a coworking space. These options have a lot of similarities but some important differences.

A coworking space is an established shared setup where people buy memberships to use a shared space. Oftentimes, you can select a membership tier that corresponds to your level of amenities. If you pay more, you can have a private, dedicated multi-person office. If you pay less, you can either buy a dedicated workstation with a lockable drawer that's out in an open space, or you can buy access to a workspace where you don't have a dedicated desk. Typically, all members have access to the kitchen area, printer room, and outdoor areas. In addition, coworking spaces also have a conference room or event space available to book at an hourly rate for both members and nonmembers.

An office-sharing arrangement is usually more long-term than a coworking membership, lasting a year or more instead of month-to-month. In addition, while coworking spaces can have a revolving set of "tenants," the parties to an office sharing agreement are fewer and more established.

Moreover, parties to an office sharing agreement can expect more perks and shared services. If you opt for an office sharing arrangement, you can expect to have a receptionist, printer and copy machine, office supplies, kitchen amenities, and access to conference rooms, all included in your portion of the rent. With a coworking space, you might have access to some of these amenities, but expect to pay on a use-by-use basis.

What to Include in an Office Sharing Agreement

Regardless of what type of business you have and what type of space you're looking to share, there are a few basic issues you'll need to sort out.

Who Has Responsibility for the Space

One of the first questions that'll come up is who has ultimate responsibility for the workspace. If you've joined with others to find a space to share, you'll probably have equal responsibility from the beginning. However, if one person owns a building, then the others could buy a share of the property to become owners, or pay rent for the space they share. If one person is already leasing the space to be shared, then the sharers need to decide whether they'll join as primary tenants or become subtenants.

Note that any time there's a tenant/subtenant arrangement, it's important for the primary tenant to have the landlord's approval. You'll likely need to give your landlord the same information about your subtenant that you had to provide about yourself when you first leased the space, such as income, rental history, references, and financial condition.

How You'll Make Decisions About the Space

You'll need to decide how to make decisions about your shared space. These decisions can range from big to small—from allowed activities to appropriate decorations. You might defer many of those decisions to the owner or primary tenant, if there is one. If you have equal ownership or responsibility, then you'll have to figure out how you want to make decisions together.

How You'll Divide Costs

No matter who owns the space—whether it's one of you, all of you, or a commercial landlord—you and your sharing partners will have to decide who'll pay for what. Often, sharers use different amounts of space, sometimes even for different purposes. If your use isn't equal, either in terms of time or space, you'll need to come up with a payment arrangement that's fair to everyone (and flexible, in case people's needs change).

How You'll Use Common Areas

Most workspaces have some common space, even if it's only a small entrance area at the front of a warehouse. In many shared office suites, there are the following common areas:

• a reception area
• an administrative area that includes storage space, workspace, and office equipment
• a separate conference room
• restrooms, and
• possibly even kitchen facilities.

No matter how much common space you have, you'll need a clear agreement about how it'll be used. You'll also need to agree on how you'll pay for this use, such as by:

• splitting the cost of the common space equally, regardless of how much private space each sharer uses
• prorating the cost of the common space based on how much private space each sharer uses
• prorating the cost of the common space based on how much of the common space each sharer uses, or
• limiting the use of common space to tenants who want to pay for its use, and then splitting or prorating the cost among the users.

You'll also need to discuss how you'll keep the common space clean, what standard of tidiness you want to maintain in the administrative area, how you'll schedule the conference room, and how you want the space to look.

Our sample office sharing agreement below addresses these important topics and more.

Sample Office Sharing Agreement

This Office Sharing Agreement (the "Agreement") is made on June 30, 2025 (the "Effective Date") by and between Benjamin Coke, Suzanne Clarkson, Tamara Lester, Marilyn Mertin, and Robyn Troxel, who intend to share the office suite located at 2525 College Avenue in Rockland (the "Office Suite").

WHEREAS, the parties are all named lessors under the lease with the landlord, Janice Lubner, with an effective date of June 30, 2025. (the "Lease"). Each party is jointly and severally liable for the rent and any other expenses under the Lease.

WHEREAS, Ben is an accountant, Suzanne is a financial planner, Marilyn and Tamara are lawyers, and Robyn is a web developer.

WHEREAS, the parties desire to share the use of the Office Suite to save money and resources and have the benefit of one another's knowledge, skills, experience, and company.

NOW THEREFORE, in consideration of the mutual promises and benefits to be derived by the parties, they do hereby agree to the following:

1. Parties to the Agreement. The parties agree to share the Office Suite under the terms and conditions detailed in this Agreement. Only the people listed in this Agreement shall share the Office Suite unless otherwise agreed to by the parties.

2. Liability Under the Lease. Each party is jointly and severally responsible for the rent and any other expenses under the Lease.

3. Division of the Office Suite. All parties will share use of the common areas, including the reception area, kitchen, conference room, and the room the parties describe as the administrative space. Ben and Suzanne will each have a private office. Tamara and Marilyn will share the third office, and they will work out their own schedule as to use. Robyn will use the conference room as a meeting space and otherwise will work off-site.

4. The Administrative Space. The administrative space will contain a desk for one staff person (discussed in paragraph 14, below), a combination copier and fax machine that all parties will share, and a work table for common use.

5. Term of the Lease and this Agreement. The Lease on the Office Suite begins on July 1, 2025, and has a term of three years. Each party intends to stay for the entire term of the Lease. If any one party wants to leave before the end of the Lease, that party must provide the other parties to this Agreement with 30 days' notice. The departing party is responsible for rent until a replacement tenant is found, and will participate in the other parties' joint decision on the best way to look for a replacement sharer. The parties will agree at that time on a process for advertising the space and choosing the new tenant, and the departing party will take the lead on doing the necessary tasks to find the new tenant.

6. Sublease of the Office Suite. No party may sublease their own individual space without the consent of each of the other parties who are sharing the space.

7. Allocation of Copier and Fax Machine Expenses. Tamara has leased a copier, which is also a fax machine (the "Copier"). All parties to this Agreement agreed on the model and lease term for the Copier. Each party will pay one-fifth of the cost of the Copier lease by reimbursing Tamara quarterly in advance, on the first of July, October, January, and April. When the parties first take possession of the Office Suite, each party will contribute in equal shares to the purchase of two cartons of copy paper. For the first six months of the Copier's use, the parties will keep track of copies made and fax pages received. At the end of those six months, the parties will tally up the total pages of copies and fax pages, and if there's a significant discrepancy in use, the parties will adjust the cost of paper in a way that all parties agree is fair. The parties will also pay for toner in proportion to each party's use or as otherwise agreed.

8. Phone Lines and Communication. Each party will have their own phone line(s) installed and will maintain their own voicemail. Each party is solely responsible for the expenses related to their own phone line and voicemail.

9. Maintenance of Common Areas. Each party agrees to keep the common areas tidy and to keep their own supplies in their private offices. The landlord has agreed under the Lease to provide cleaning service once a week.

10. Kitchen Supplies and Cleanup. The parties will cooperate to supply the kitchen with dishes and silverware by the parties agreeing to bring their own extra supplies from home. The parties all agree to clean up after themselves, including taking old food out of the refrigerator at the end of each week.

11. Repairs and Improvements. The Landlord will be responsible for repairs and maintenance outlined in terms of the Lease. For any repairs or maintenance that is the responsibility of the tenants under the Lease, the parties shall share in the expense and responsibility proportional to the space they occupy and their involvement to the repairs or improvements needed. Ben and Suzanne will be responsible for any repairs and improvements related to their private office space. Tamara and Marilyn will be responsible for any repairs and improvements related to their private office space as mutually agreed to by the two parties. Each party will be responsible for the expenses related to repairs and improvements that they cause, whether in a private office space or common area. If any party wishes to make an alteration or improvement to a common area of the Office Suite, they must have the consent of all other parties, unless otherwise agreed upon. The parties are bound by the terms and conditions related to repairs, improvements, and alterations under the Lease.

12. Conference Room. The parties have set up a Google calendar for scheduling the conference room, and the parties agree to use it on a first-come, first-served basis. The parties agree that no one party will use the conference room for more than eight hours a week or for any meeting longer than half a day, unless that party has the prior consent of all parties.

13. Services of Administrative Hire. Ben and Suzanne will hire an administrative person ("the admin"), who will also serve as receptionist for the entire Office Suite and will greet visitors, accept packages, and sort mail for all parties to this Agreement. Except for those tasks, the admin will work exclusively for Ben and Suzanne unless a special arrangement is made for the admin to undertake specific tasks for another party. Ben and Suzanne will have a separate agreement regarding sharing the time and expenses of the admin.

14. Division of Rent and Expenses. Under the lease, the total rent, including expenses, of the Office Suite is $2,600 per month. Each party agrees to divide the rent as follows:

Ben: $725

Suzanne: $725

Tamara: $450

Marilyn: $450

Robyn: $250

15. Parties' Responsibilities. Each party is a sole owner of their business, and each party will have their own stationery, telephone number, and professional liability insurance (if appropriate to their profession). No party is responsible for any acts or omissions of any other party, unless the parties enter into a professional relationship with each other or do other types of work for or with one another. The terms and conditions of that relationship shall be agreed upon separately by the applicable parties.

16. Monthly Meeting of the Parties. The parties agree to meet together on the first Monday of each month for lunch in the kitchen, to discuss any concerns the parties have about this sharing arrangement. The parties will use their best efforts to reach a consensus on any issues that comes up; if no consensus can be reached, the parties will use a majority vote. The outcome of the majority vote is final and binding on all parties to this Agreement. The parties may agree to another date, time, or location for the monthly meeting.

17. Conflict Resolution. If any one or more parties have a conflict that the involved parties are not able to resolve through direct discussion, the parties agree to all sit down together and try to reach a resolution. If a resolution cannot be reached, the parties in conflict agree to attend at least one mediation session with a mediator they agree on, and to share the cost of the mediation. If the mediation session doesn't help to achieve a resolution, the parties are each free to pursue whatever remedies the parties think are appropriate. The parties all agree to act in good faith and give one another the benefit of the doubt in any conflict or potential conflict.

18. Termination of Tenancy. The parties agree not to terminate any one party's tenancy before the term of the Lease is up unless the party breaks the terms of the Lease or of this Agreement. In the case where the Lease or Agreement is breached, a vote of three of the other parties to this Agreement constitutes agreement of the group to ask the breaching party to leave. Anyone whose tenancy is terminated involuntarily has sixty days to leave, and isn't responsible for helping to find a replacement tenant as described in paragraph 5.

_____________________ Benjamin Coke ________ Date
_____________________ Suzanne Clarkson ________ Date
_____________________ Tamara Lester _______ Date
_____________________ Marilyn Mertin ________ Date
_____________________ Robyn Troxel ________ Date

You should note that the above agreement assumes that all of the tenants are on the original lease with the landlord. However, some landlords don't allow multiple parties to be named as tenants for one office space. If your landlord doesn't allow this kind of arrangement, one person will have to become the named tenant under the original lease and sublet the other spaces to the rest of the sharers. In that situation, your agreement should include a provision that all of you are bound by the terms of the original lease.