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Real Estate Colocation Addendum

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REAL ESTATE COLOCATION ADDENDUM

Parties and Property

This Colocation Addendum (Addendum) is made effective as of and is incorporated into and supplements the Lease dated between the parties below.

Property Identification

Scope of Colocation

Landlord hereby permits Tenant to allow Colocator to install and operate equipment within the Premises subject to the terms below. The colocation location within the Premises is described as:

Maximum permitted equipment load: kW. Maximum floor loading: .

Financial and Payment Terms

Late fee for overdue colocation payments: of unpaid amount or minimum of , whichever is greater.

Permits, Compliance and Modifications

Tenant and Colocator shall obtain and maintain, at their expense, all governmental permits, licenses and approvals required for installation and operation of colocated equipment. Tenant and Colocator shall comply with all applicable laws, codes, and regulations. No structural modifications, penetrations, or permanent alterations shall be made without Landlord's prior written consent.

Utilities, Metering and Access

Utilities used by Colocator shall be separately metered where reasonably practicable. If separate metering is not installed, Tenant shall be responsible for payment of increased utility costs attributable to Colocator as determined by Landlord in a commercially reasonable manner.

Landlord and Landlord's agents shall have reasonable access to the colocation area for inspection and safety purposes upon advance notice except in emergency situations. Tenant shall ensure Colocator's personnel comply with Landlord's security and access procedures.

Insurance and Indemnity

Tenant shall require Colocator to maintain insurance covering property damage, commercial general liability, and cyber liability where applicable. Tenant and Colocator shall name Landlord as an additional insured on the general liability policy to the extent of claims arising from Colocator's activities.

Tenant and Colocator shall indemnify, defend and hold harmless Landlord from and against any and all claims, liabilities, losses, fines, penalties, costs and expenses (including reasonable attorneys' fees) arising from Colocator's installation, operation, maintenance or removal of equipment, except to the extent caused by Landlord's gross negligence or willful misconduct.

Installation, Maintenance and Removal

All installation and removal shall be performed by licensed contractors approved by Landlord. Tenant shall ensure Colocator performs maintenance in a manner that does not unreasonably interfere with the use of the Premises by other tenants. Tenant shall restore any affected areas to their prior condition upon removal of equipment, reasonable wear and tear excepted.

Disclosures

The parties disclose the following conditions (mark applicable):

Default and Remedies

Default by Tenant or Colocator under this Addendum shall constitute a default under the Lease. In the event of default, Landlord may pursue any remedies available under the Lease or at law or equity, including removal of Colocator equipment at Tenant's expense following reasonable notice and opportunity to cure where cure is possible and time permits.

Miscellaneous Provisions

This Addendum constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior oral or written agreements. No amendment shall be effective unless in writing and signed by Landlord and Tenant. If any provision is held invalid, the remainder shall continue in full force and effect.

Landlord Printed Name:

By:

Date:

Tenant Printed Name:

By:

Date:

Enter text✕

What the Real Estate Colocation Addendum Covers

A Real Estate Colocation Addendum is a written amendment to a lease or property agreement that permits a tenant or third party to install, operate, or house equipment or facilities on leased premises alongside primary occupancy. Typical uses include telecommunications racks, data center cages, antennae, and shared office fixtures. The addendum clarifies permitted equipment types, physical location, access windows, power and HVAC obligations, security requirements, insurance and indemnity allocations, and responsibilities for removal or remediation at lease end. It is appended to the primary lease and follows the lease's governing law and termination provisions.

Why a Colocation Addendum Matters for Landlords and Tenants

A clear colocation addendum prevents ambiguity about permitted equipment, access, costs, and liabilities, reducing disputes and permitting predictable facility operations.

Why a Colocation Addendum Matters for Landlords and Tenants

Who Typically Prepares and Signs This Addendum

Each signer should confirm authority to bind their organization and that insurance and technical requirements stated in the addendum are in place before execution.

  • Commercial landlords and property managers responsible for building systems and lease compliance
  • Tenants installing technical equipment such as server racks, telecom gear, or specialty fixtures
  • Facility or data center operators managing shared infrastructure and access controls

Core Elements Every Professional Colocation Addendum Should Include

A complete addendum is structured to cover scope, access, costs, risk allocation, termination, and compliance obligations in clear, enforceable language.

Scope of Use

Define permitted equipment, maximum footprint, weight/load limits, power and HVAC thresholds, and prohibited items to avoid operational conflicts and safety hazards.

Access and Security

Specify authorized personnel, access hours, escort requirements, key or badge protocols, and remote monitoring or CCTV use to protect property and equipment integrity.

Costs and Utilities

Allocate responsibility for metered power, HVAC surcharges, installation fees, ongoing maintenance, and procedures for billing and payment disputes.

Insurance and Indemnity

State required coverages (limits, endorsements), name additional insureds, and define indemnity scope for damage, data loss, or third-party claims.

Removal and Restoration

Set timelines and conditions for removal of tenant equipment at lease termination and remediation obligations, including restoration standards and cost recovery.

Compliance and Permits

Require adherence to building code, fire marshal, electrical permit standards, and any landlord-directed inspections or certifications prior to operation.

Essential Information to Include

Parties: Full legal names
Premises: Address and unit ID
Equipment Description: Type and quantity
Power Details: Voltage and load
Insurance Limits: Coverage amounts
Effective Term: Start and end

Step-by-Step: Filling Out the Colocation Addendum

Follow these steps to complete the addendum accurately and reduce the need for revisions or legal review.

  • 01
    Identify Parties: Enter full legal names and entity types exactly as on formation documents.
  • 02
    Describe Location: Specify suite, rack, cage, or floor plan position with measured footprint.
  • 03
    Detail Services: List power, cooling, bandwidth, and access services with quantitative limits.
  • 04
    Sign and Date: Authorized reps sign and date in MM/DD/YYYY format; include printed names and titles.

Where to Submit and How the Addendum Is Processed

Submission routes depend on landlord procedures; this overview describes common processing paths and confirmations.

  • Landlord Office: Deliver a signed original to property management for placement in lease file.
  • Legal Counsel: Provide counsel with a copy for review when insurance or indemnity limits require negotiation.
  • Facilities Team: Send technical details to facilities for installation planning and permitting.
  • Electronic Archive: Store an executed PDF in the tenant and landlord records for future reference.

Digital Signing and Integration Considerations

Use systems that preserve an audit trail, allow secure storage, and meet industry compliance such as ESIGN and UETA; verify BAAs for HIPAA-covered workflows.

  • Authentication: Email, SMS code
  • Integrations: Salesforce, NetSuite
  • Formats: PDF, DOCX

Typical Timelines and Notice Periods to Track

Monitor these common dates and notice windows to maintain compliance and avoid service interruptions or breaches.

Effective Date and Term:

Set the agreement start (MM/DD/YYYY) and explicit end or renewal terms to avoid unintended holdover.

Installation Notice:

Provide landlord with required lead time for equipment installation and inspections.

Insurance Effective Date:

Align insurance policy dates with the addendum effective date to ensure coverage.

Removal Window:

Specify tenant removal timeline after lease termination to manage site restoration.

Permit Approvals:

Allow time for building or municipal permits before commissioning equipment.

Common Preparation Mistakes to Avoid

  • Vague equipment descriptions that omit power or weight specs, causing disputes during installation or load analysis.
  • Missing or misaligned insurance effective dates that create coverage gaps and expose parties to uncovered losses.
  • Failure to coordinate with facilities or building engineers, leading to delayed approvals or noncompliant installations.
  • Not documenting access procedures and emergency contacts, which increases downtime and security risks during incidents.

Consequences of an Incorrect or Incomplete Addendum

Lease Default: Possible
Insurance Gap: Claims denied
Regulatory Fines: Permitting penalties
Removal Costs: Tenant liable
Operational Downtime: Service interruptions
Indemnity Exposure: Significant

eSignature Pricing and Feature Comparison Relevant to Executing Addenda

Compare basic price points and feature availability for common eSignature vendors. signNow is listed first per comparison convention.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About the Colocation Addendum

Answers to common execution, notarization, and enforcement questions for landlords, tenants, and facilities teams.


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