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. Lessor may not terminate the lease without cause before the end of year 5. | ||
(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. | |||
Revision as of 22:29, 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:
- Build-out is done with no lease cost to the lessee.
- Move-in abatement is in lieu of lessor paying for build-to-suit.
- Years 1 through 5 abatement represent a 50/50 split of the cost of asphalt, fire suppression, and sign renovation.
- 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. Lessor may not terminate the lease without cause before the end of year 5.
(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.