Determination of Agreed Fair Market Rent Sample Clauses
The Determination of Agreed Fair Market Rent clause establishes the method by which the fair market rental value of a property is calculated and agreed upon by the parties involved. Typically, this clause outlines the process for assessing current market conditions, such as referencing comparable properties or engaging independent appraisers, to arrive at a mutually acceptable rent amount. Its core function is to ensure that rent adjustments reflect actual market rates, thereby preventing disputes and maintaining fairness for both landlord and tenant.
Determination of Agreed Fair Market Rent. Landlord and Tenant shall negotiate in good faith to reach agreement as to the Fair Market Rent and, if requested by Tenant, one or more Responsible Officers of Landlord shall meet with one or more Responsible Officers of Tenant at Tenant’s offices in Houston, Texas or such other location as the Parties shall mutually agree to conduct such negotiations in person. The Agreed FMV Rent shall be the Base Rent for the Leased Property for the Renewal Term. If Landlord and Tenant are unable to agree upon the Fair Market Rent on or prior to the Renewal Notice Date, Tenant may notify Landlord in writing on or prior to the Renewal Notice Date of its intent to exercise its Renewal Option subject to an acceptable determination of Fair Market Rent (such notice, a “Fair Market Rent Determination Notice”). If Tenant does not deliver the Fair Market Rent Determination Notice on or before the Renewal Notice Date, Tenant will be deemed to have decided not to exercise the Renewal Option and the Lease will expire at the end of the Initial Term. If Tenant delivers a Fair Market Rent Determination Notice to Landlord, then each of Landlord and Tenant shall submit to the other a notice (each, a “Designation Notice”) no sooner than fifteen (15) Business Days after Tenant’s delivery of such Fair Market Rent Determination Notice and no later than thirty (30) Business Days after Tenant’s delivery of such Fair Market Determination Notice, (i) its good faith estimate of the Fair Market Rent during the Renewal Term (collectively referred to as the “Estimates”), and (ii) the name of the Independent Appraiser appointed by it to determine which of the two (2) Estimates most closely reflects the Fair Market Rent for the Leased Property during the Renewal Term, and Fair Market Rent shall be determined as follows:
(i) If either Landlord or Tenant fails to appoint an Independent Appraiser within the fifteen (15) Business Day period referred to above, the Independent Appraiser appointed by the other Party shall be the sole Independent Appraiser for the purposes hereof and shall determine which of the two (2) Estimates most closely reflects the Fair Market Rent within twenty (20) Business Days after delivery of the Designation Notice appointing such Independent Appraiser, and the Estimate so chosen shall be binding on both Landlord and Tenant as the Base Rent for the Leased Property during the Renewal Term.
(ii) If both Landlord and Tenant appoint an Independent Appraiser within the fifteen (15)...