Net Effective Rent definition
Net Effective Rent means the net present value as reasonably determined by Landlord of the aggregate consideration, determined on an average annual basis, payable to Landlord under the proposal at issue (i.e., either the Advice or the offer to another party, as the case may be), taking into account all base rent, additional rent, free rent, construction or other allowances, the cost of any work performed in the Offering Space by Landlord at its expense, the length of lease term, and all other relevant economic terms.
Net Effective Rent means, for any lease the base rent scheduled under a Tenant Lease, as reduced for any amounts paid by the landlord to or on behalf of the tenant for the purpose of inducing the tenant to enter into such Tenant Lease, including, without limitation, an excessive tenant improvement allowance, moving expenses, free rent periods or abatements or lease buyouts.
Net Effective Rent means the net rental amount to be paid to Landlord, taking into account any tenant improvement expenses and allowances to be incurred by Landlord, any other monetary concessions granted by Landlord and any other monetary amounts paid by Landlord (such as brokerage commissions) (amortized over the life of the lease term proposed under the ROFO Terms or the terms to the potential tenant, as applicable).
Examples of Net Effective Rent in a sentence
Notwithstanding the foregoing, in the event that the Right of First Offer terminates pursuant to clause (i) above, Landlord shall not lease the Offering Space to another party (other than the current occupant thereof) at a Net Effective Rent (defined below) less than ninety percent (90%) of the Net Effective Rent set forth in the Advice without first giving Tenant another Advice at such lower Net Effective Rent.
For example, if the annual base rent is $45.00 per net rentable square foot and the annual expense stops for operating expenses and real estate taxes are $10.00 and $1.50 per net rentable square foot respectively, the Annual Net Effective Rent would be $33.50 net rentable square foot ($33.50 = $45.00 - $10.00 - $1.50).
The cost of delivering the space according to Exhibit C of this Lease will then be amortized at a rate of 10% per annum over the balance of the Term of this Lease and added to the Net Effective Rent.
The sum of this amortization and the Net Effective Rent will constitute Base Rent for the First Refusal Space.
With each Notice of Availability, Landlord shall include a term sheet proposal (containing, among other things, the Net Effective Rent for such Additional Space) (the “ROFO Proposal”) to lease such Additional Space that generally matches Tenant’s requirements set forth in the Expansion Notice on such proposed terms as Landlord is willing to accept for such space.
More Definitions of Net Effective Rent
Net Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the last day of the Extension Period, taking into account any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease.
Net Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the expiration date, taking into account any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease. If Landlord does not execute a lease with a third party with respect to the Available Space in question within twelve (12) months after the date on which Tenant refuses or is deemed to have refused the offer set forth in the applicable ROFO Notice, or if Landlord desires to offer the applicable Available Space on material terms different than previously described in the ROFO Notice (subject to the proviso regarding net effective rent set forth above), then Landlord must deliver a new ROFO Notice to Tenant in accordance with Section 6.2(a) above.
Net Effective Rent means the present value (applying a 6.5% annual discount rate) on a per square foot basis of the proposed rent payments as such payments are reduced by the value of all monetary concessions (specifically including, without limitation, any tenant improvement allowance, free rental period and payment of tenant relocation costs), where the value of such concessions are amortized over the entire lease term based on a 6.5% interest rate. This paragraph does not apply to any space within the Project that is subject to another right of Tenant to lease, such as any Phase 3 Premises under the Phase 3 Provisions, provided, however, Tenant’s rights under this paragraph will apply to subsequent marketing of any portions of L▇▇▇ 3 that already have been leased to another tenant. The expansion rights under leases with third-parties entered into by Landlord after offering Tenant the right to lease under this Addendum will be subordinate to Tenant’s other expansion rights except with respect to space that was previously offered to and rejected by Tenant under this Addendum or otherwise under this Lease. Concurrent with Tenant’s exercise of its right to lease additional space under this Addendum, Tenant shall increase the Letter of Credit to an amount equal to six months (or three months, if applicable under the Article in this Lease entitled “Letter of Credit Obligations”) gross rents under the Lease that will be payable when rent begins on account of the expanded space. All of Tenant’s rights under this Addendum are subject to the prior rights of the tenant under the Expansion Right of First Offer contained in the lease between Landlord and Helicon Therapeutics, Inc. for premises within L▇▇▇ 2, which provides: “If and when Landlord intends to lease vacant space within the Building (the “Refusal Space”) during the Term, Landlord shall first give written notice to Tenant of its intent to do so along with the terms Landlord intends to offer with respect to such lease, such as rent, tenant improvement allowance, and rental increases (the “Trigger Notice”). If Tenant gives written notice to Landlord within two (2) weeks after receiving the Trigger Notice irrevocably electing to lease the entire Refusal Space (Tenant’s “Exercise Notice”), then this Lease automatically will be amended to include the Refusal Space as part of the Premises (accordingly increasing the Rentable (and useable) Square Feet of the Premises, Tenant’s Pro Rata Share, etc.), and the terms included in the T...
Net Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the expiration date thereof, taking into account the use of the RFO Premises as a combination laboratory and office space, any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease.
Net Effective Rent means, with respect to any Lease demising all or any portion of the Retail Unit entered into by the Borrower after the date of this Agreement, the quotient of (a) all base rent payable under such Lease (taking into account scheduled escalations of base rent (including without limitation, contractual increases in rent set forth in such Lease)) during the initial term of such Lease (not taking into account any portion of the term that is subject to a tenant termination option (other than a termination option that may only be exercised if and when a certain event (such as casualty, condemnation or landlord event of default occurs) or a certain circumstance exists (such as a failure of a tenant to receive utility service for some period of time)) as of the date that such Lease was executed (a “Tenant Termination Option”)) minus all tenant improvement expenses and tenant improvement allowances (if any) payable by Borrower, as landlord, thereunder (but only to the extent such tenant improvement expenses and tenant improvement allowances exceed the amount therefor set forth in the Approved Budget) divided by (b) the rentable square footage demised by such Lease divided by (c) the number years (or fractions thereof) in the initial term of such Lease (not taking into account any portion of the term that is subject to a Tenant Termination Option (other than a termination option that may only be exercised if and when a certain event (such as casualty, condemnation or landlord event of default occurs) or a certain circumstance exists (such as a failure of a tenant to receive utility service for some period of time)) as of the date that such Lease was executed). For the avoidance of doubt, “base rent” under the immediately preceding sentence shall not include any so-called “free rent”.
Net Effective Rent means the base rent, including escalations thereto, payable for such First Offer Space, together with all free rent, tenant improvement expenses and allowances and all other out-of-pocket monetary concessions proposed to be provided or paid for by Landlord with respect to such First Offer Space, and any rent stop or base year protections applicable to such First Offer Space (amortized on a straight-line basis over the life of the Initial ROFO Term proposed under the First Offer Notice or the initial lease term of the proposed lease to the third party tenant, as applicable). Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first offer provided herein, if at all, with respect to the entire First Offer Space identified by Landlord in any First Offer Notice, and Tenant may not elect to lease only a portion thereof.
Net Effective Rent means, with respect to any Lease for space in the Retail Units, (a) the aggregate base rental income payable under such Lease based on a summation of all rents due thereunder from the commencement date of such Lease until the earlier to occur of (i) the expiration of the initial term of such Lease or (ii) the date, if any, on which the Tenant under such Lease is entitled to terminate such Lease with respect to more than fifty percent (50%) of the rentable square footage demised thereunder, less (b) the aggregate amount of any Tenant Improvement costs, Tenant Allowances, Leasing Commissions, free rent and/or other rent concessions provided for under such Lease.