Canada: Drafting Leasing Agreements For Tenants In The Life Sciences Sector

Last Updated: July 26 2018
Article by Gowling WLG

When drafting leasing agreements with any business, it is important to consider how their needs may differ to the previous tenants or other occupants of the building. Every business is different and will have different requirements for the space that they work in.

According to a recent Government report, the UK life sciences sector is booming with a record turnover of over £70 billion. The industry provides over 241,000 jobs across the country and attracts significant funding from private equity and foreign direct investments. The growth in the sector will inevitably result in an increased need for suitable premises in the right locations, offering opportunities to landlords that are able to fulfil this need.

Businesses operating in this industry will have specialist needs in comparison to a regular office tenant. The sector is subject to heavy regulation in comparison to other companies and their premises will need to be compliant with any regulatory frameworks. When drafting leases for life sciences tenants, landlords need to consider how agreements will need to differ to protect their assets and ensure that agreeable relationships are formed.

How is access and safety an issue in lease agreements?

Due to the nature of life sciences, there may be issues with landlords having regular access to the premises. Work can often be confidential and safety also needs to be considered. Laboratories may use hazardous substances or need to be kept sterile. Having landlords on the premises without forewarning could have significant consequences, causing production delays and breaches of contract.

Landlords that require access to the building will need to agree with their tenant alternative arrangements so that they can provide consistent service while remaining safe and not compromising the tenant's operations. It might also be advisable to consider security generally and if it could affect other occupants of the building.

How can utilities be an issue in a lease agreement?

Businesses in the life sciences sector will operate in a different way to regular tenants and therefore their use of utility services needs to be considered when drafting a lease agreement. Landlords should discuss with the tenant things like water and electricity usage, as well as air regulation. It will need to be agreed how these specialist needs for the businesses will be catered and paid for and should be discussed early on in negotiations.

How can alterations cause issues in a lease agreement with life sciences tenants?

When leasing to businesses in the life sciences sector, you will often begin with an empty shell that need to be converted for the tenant's needs. Bespoke alterations may be needed to make premises suitable for their operations. Any potential tenants need to be made fully aware of any restrictions in the lease that could hinder their activities. These restrictions can then become further complicated if there are other tenants in the building. Considerations will need to be made as to how alterations would impact occupants and their businesses, such as any additional noise, changes to access and security.

Landlords need to make sure when discussing the leasing agreement that they understand the needs of the tenant, as well as any future changes that are in the pipeline. The future needs of a tenant are always a valuable consideration as strategies are subject to change and could impact how a space is used. Talking to the potential tenant about their plans for the period of the lease rather than just their current needs could prevent future issues.

While negotiating the responsibility and costs of any alterations can become complicated, these discussions are incentives to both parties. They should make it easier to contract a longer lease term and future renewals, securing recurring revenue for the landlord.

How can the lease period cause issues in an agreement?

Due to the nature of the alterations that may be needed by businesses in life sciences, it is advisable that lease terms are contracted for longer periods of time. The tenants are likely to welcome longer terms as they are unlikely to want to continuously search for new premises that cater for their needs, and alterations can take significant periods of time to be made.

While the terms of any agreement should be carefully considered, if a longer lease term is agreed it becomes even more critical to ensure that the agreement is acceptable to all parties and considers everyone's needs.

What should always be considered in lease agreements with life sciences tenants?

While it is important to cover the specialist needs of a life sciences tenant, it is also essential that you consider the terms that are included in typical agreements that you might find with office tenants. You should outline items like each party's responsibilities, rent and payment methods and notice periods. When discussing these areas there may even be some further changes needed to be based on the nature of the business.

When drafting leasing agreements with businesses in the life sciences sector, landlords should consider the potential needs of the tenant and how the agreement may need to be adapted. Our Insights and Resources are recommended for landlords drafting lease agreements. We will update you regularly with information from our legal experts in Real Estate, as well as other sectors and services you may be interested in.

Read the original article on

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Thompson Dorfman Sweatman LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Thompson Dorfman Sweatman LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions