METHODOLOGY FOR REVIEWING AND COMPARING THE COMPARABLE TRANSACTIONS. For purposes of this Section 5, the term “Comparable Transactions” shall include any proposed transactions with third parties for the First Offer Space and Offsite First Offer Space (pursuant to Section 1.3 and 1.4 above, respectively). In order to analyze the Comparable Transactions based on the factors to be considered in calculating Market Rent and in order to evaluate the value of the Economic Terms (pursuant to Section 1.3 and 1.4 above, respectively), and given that the Comparable Transactions may vary in terms of length of term (the “Comparable Term”), rental rate, concessions, etc., the following steps shall be taken into consideration to “adjust” the objective data from each of the Comparable Transactions. By taking this approach, a “Net Equivalent Lease Rate” for each of the Comparable Transactions shall be determined using the following steps to adjust the Comparable Transactions, which will allow for an “apples to apples” comparison of the Comparable Transactions. 5.1. The contractual rent payments for each of the Comparable Transactions should be arrayed monthly or annually over the Comparable Term. All Comparable Transactions should be adjusted to simulate a net rent structure, wherein the tenant is responsible for the payment of all property operating expenses in a manner consistent with this Lease. This results in the estimate of Net Equivalent Rent received by each landlord for each Comparable Transaction being expressed as a periodic net rent payment.
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Sources: Office Lease (Box Inc)
METHODOLOGY FOR REVIEWING AND COMPARING THE COMPARABLE TRANSACTIONS. For purposes of this Section 5, the term “"Comparable Transactions” " shall include any proposed transactions with third parties for the First Offer Space and Offsite First Offer Space (pursuant to Section 1.3 and 1.4 above, respectively). In order to analyze the Comparable Transactions based on the factors to be considered in calculating Market Rent and in order to evaluate the value of the Economic Terms (pursuant to Section 1.3 and 1.4 above, respectively)Rent, and given that the Comparable Transactions may vary in terms of length of term (the “Comparable Term”)term, rental rate, concessions, etc., the following steps shall be taken into consideration to “"adjust” " the objective data from each of the Comparable Transactions. By taking this approach, a “"Net Equivalent Lease Rate” " for each of the Comparable Transactions shall be determined using the following steps to adjust the Comparable Transactions, which will allow for an “"apples to apples” " comparison of the Comparable Transactions.
5.1. The contractual rent payments for each of the Comparable Transactions should be arrayed monthly or annually over the Comparable Termlease term. All Comparable Transactions should be adjusted to simulate a net rent structure, wherein the tenant is responsible for the payment of all property operating expenses in a manner consistent with this Lease. This results in the estimate of Net Equivalent Rent received by each landlord for each Comparable Transaction being expressed as a periodic net rent payment.
Appears in 1 contract
Sources: Office Lease (Nektar Therapeutics)