HSL 1526 Proposal Fifty Fifty Over Five: Difference between revisions

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(1) After the first year of lease payments, the lessee may, at their sole discretion and at any time, terminate the lease without cause and without penalty. Lessee will have incurred the property improvement expense for asphalt, fire suppression, and sign renovation, which improvements will remain with the property. Those improvements are the sole and entire benefit to the lessor for the early termination of the lease by the lessee. Lessor may not terminate the lease without cause before the end of year 5.
(1) After the first year of lease payments, the lessee may, at their sole discretion and at any time, terminate the lease without cause and without penalty. Lessee will have incurred the property improvement expense for asphalt, fire suppression, and sign renovation, which improvements will remain with the property. Those improvements are the sole and entire benefit to the lessor for the early termination of the lease by the lessee.
 
(2) Early termination of the lease by lessor would incur a penalty equal to two times (2x) the remaining abatement for the remainder of the lease, to be paid to lessee.

Latest revision as of 22:34, 10 September 2022

Lease Rate Table

Following are example lease rate figures that will be updated to reflect the outcome of the Phase 1 discovery.

These rough figures assume:

  1. Build-out is done with no lease cost to the lessee.
  2. Move-in abatement is in lieu of lessor paying for build-to-suit.
  3. Years 1 through 5 abatement represent a 50/50 split of the cost of asphalt, fire suppression, and sign renovation.
  4. 5% inflation through year 3, 3% after that.
Period Headline Rate Abatement Net Rate Notes
Build-Out (3 months) $3100/month $3100 $0 Non-occupancy Period
Move-In (6 months) $3100 $3100 $0 Abatement in lieu of Build-to-suit
Year One (12 months) $3100 $900 $2200 Abatement for cost of capital improvement begins
Year Two (12 months) $3255 (5% increase) $900 $2355 Lessee may terminate lease.(1)
Year Three (12 months) $3418 (5% increase) $900 $2518 Lessee may terminate lease.(1)
Year Four (12 months) $3521 (3% increase) $900 $2621 Lessee may terminate lease.(1)
Year Five (12 months) $3626 (3% increase) $900 $2726 Lessee may terminate lease.(1)

(1) After the first year of lease payments, the lessee may, at their sole discretion and at any time, terminate the lease without cause and without penalty. Lessee will have incurred the property improvement expense for asphalt, fire suppression, and sign renovation, which improvements will remain with the property. Those improvements are the sole and entire benefit to the lessor for the early termination of the lease by the lessee.

(2) Early termination of the lease by lessor would incur a penalty equal to two times (2x) the remaining abatement for the remainder of the lease, to be paid to lessee.