Prevailing Market Rental Rate means, as to any space subject to this Lease Agreement for which it is being determined (the “Subject Premises”), the annual amount of “gross” rental that a willing tenant would pay in a similar type transaction (i.e., renewal) and a willing landlord would accept in arm’s length, bona fide negotiations for lease of the Subject Premises to be executed at the time of determination and to commence on the commencement of the subject lease term, based upon other lease transactions made in the Building and other comparable office buildings in the Gulf Freeway/Clear Lake area of Houston, Texas, taking into consideration all relevant terms and conditions of any comparable leasing transactions, including, without limitation: (i) location, quality and age of the building (taking into consideration renovations); (ii) use and size of the space in question; (iii) location and/or floor level within the building; (iv) extent of leasehold improvement allowances (considering existing improvements); (v) the amount of any abatement of rental or other charges; (vi) parking charges or inclusion of same in rental; (vii) lease takeovers/assumptions; (viii) club memberships; (ix) relocation allowances; (x) refurbishment and repainting allowances; (xi) any and all other concessions or inducements; (xii) extent of services provided or to be provided; (xiii) distinction between “gross” and “net” lease; (xiv) base year or dollar amount for escalation purposes (both operating costs and ad valorem/real estate taxes); (xv) any other adjustments (including by way of indexes) to base rental; (xvi) credit standing and financial stature of the tenant or subtenant; and (xvii) length of term.
Prevailing Market Rental Rate means the rental rate for properties of equivalent quality, size, utility and location, with the length of the lease term, and credit standing of the tenant, as determined by Landlord in its reasonable discretion, taken into account. Additionally, Landlord shall provide Tenant with a tenant improvement allowance, if any, in addition to any other inducements and benefits available to renewing tenants consistent with the then current renewal market for tenants comparable to Tenant in a building comparable to the Building. These allowances, inducements and benefits along with the Prevailing Market Rental Rate shall together constitute the “Prevailing Market Terms”. Upon notification from Tenant of the exercise of an Option, Landlord shall, within fifteen (15) days thereafter, notify Tenant in writing of the proposed Prevailing Market Terms for the applicable Renewal Term; Tenant shall, within fifteen (15) days following receipt of same, notify Landlord in writing of its acceptance or rejection of the proposed Prevailing Market Terms. If Tenant rejects Landlord’s proposal and Tenant and Landlord have not agreed on the Prevailing Market Terms for the extended term within fifteen (15) days of such rejection notice (the “Negotiation Period”), then within ten (10) days after the end of the Negotiation Period, Tenant may withdraw its extension notice and this Lease shall terminate at the end of the then current term, or Tenant may elect to invoke the appraisal process to determine the Prevailing Market Terms. If Tenant does timely invoke the appraisal process, the Prevailing Market Rental Terms shall be determined in accordance with the following: Within fifteen (15) days of Tenant’s election to invoke the appraisal process, Landlord and Tenant shall each appoint a disinterested and qualified real estate brokerage or appraisal professional (the “Professional” or “Professionals”). If the Professionals cannot agree upon the Prevailing Market Rental Terms within fifteen (15) days following their appointment, the Professionals shall forthwith select a third disinterested and qualified Professional, and the decision of any two Professionals shall be binding. Notification in writing of this decision shall be made by the Professionals to Landlord and Tenant within fifteen (15) days following the selection of the third Professional. Landlord and Tenant shall bear the expense of the Professional appointed by each, and the expense of the third Professional shall be shared jo...
Prevailing Market Rental Rate means the fixed base rent per annum which, on such date, a willing landlord under no compulsion would agree to accept from a tenant, having the creditworthiness of Tenant, and such a willing tenant under no compulsion would agree to pay, for a lease of such space for such period, on all of the terms and conditions of this Lease to be applicable including (i) any construction allowance and/or free rent period to which Tenant will be entitled, or the absence of such allowance and/or free rent period, as the case may be, (ii) Tenant's obligation to pay additional rent based upon operating expenses and taxes and/or the base year or amount to be applicable to such obligation, (iii) all other economic concessions, and (iv) all applicable market brokerage commissions paid in the downtown Chicago market. The Prevailing Market Rental Rate shall be ascertained on a "net effective" or "level pay" basis by (a) calculating the net present value of (i) the net rental rate; (ii) any rent adjustments other than for increases in operating expenses and real estate taxes; (iii) Landlord concessions including but not limited to demolition, tenant improvement contributions, lease assumptions, credits for rent, operating expenses or real estate taxes; and (iv) brokerage commissions; and then (b) amortizing the net present value amount over the remaining term of the Lease (or renewal period) at a market interest rate utilized by other landlords of similar properties in downtown Chicago.
Examples of Prevailing Market Rental Rate in a sentence
The determination of the Prevailing Market Rental Rate shall take into account any material economic differences between the terms of this Lease and any comparison lease, such as rent abatements, construction costs, other concessions, and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes.
If the Professionals cannot agree upon a Prevailing Market Rental Rate within thirty (30) days following their appointment, the Professionals shall forthwith select a third disinterested and qualified Professional, and the decision of any two Professionals shall be binding.
Within ten (10)) days of selection of the Arbitrator, Landlord and Tenant each shall state, in writing, their determination of the Prevailing Market Rental Rate supported by the reasons therefor and shall make counterpart copies for each other and the Arbitrator, under an arrangement for simultaneous exchange of the determinations.
If Tenant provides Landlord with a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the Prevailing Market Rental Rate payable as Base Rent during the Extension Term.
If Lessee rejects Lessors proposal and Lessee and Lessor have not agreed on a Prevailing Market Rental Rate for the extended term within fifteen (15) business days of such notice, Lessee may withdraw its extension notice and this Lease shall terminate at the end of the primary term or first extension term, as applicable, or Lessee may elect to invoke the appraisal process to determine the Prevailing Market Rental Rate.
More Definitions of Prevailing Market Rental Rate
Prevailing Market Rental Rate means, as to the space subject to this Second Amendment for which it is being determined (the “Subject Premises”), the Base Rent that a willing tenant would pay and a willing landlord would accept in arm’s length, bona fide negotiations for a comparable lease transaction (i.e., a renewal or right of first refusal, as applicable) to be executed at the time of determination, for the Subject Premises for the lease term that such rate will be in effect. The determination of the Prevailing Market Rental Rate will be based upon a comparison of the term of Tenant’s lease of the Subject Premises to other lease transactions in the Building and in other multi-tenant office buildings in the applicable submarket of Louisville, Kentucky, with appropriate adjustments as necessary to equate the other lease transactions being compared with the applicable terms of the Lease, taking into consideration all relevant factors including, without limitation, use, location and/or floor level within the applicable building, definition of rentable area, leasehold improvements and allowances provided, quality and location of the applicable building (taking into consideration renovations), rental concessions (such as moving expenses, abatements and lease assumptions), extent of services to be provided, distinction between “gross” and “net” lease, base year or expense stop, the creditworthiness of the tenant, whether the comparison lease transaction was a renewal or expansion of an existing lease (and if so, whether the renewal or expansion was pursuant to an exercise of a previously negotiated option), the time the comparison lease became effective and any special rights of the tenant or obligations of the landlord under the comparison lease.
Prevailing Market Rental Rate means the annual amount per square foot that a willing tenant would pay and a willing landlord would accept for Base Rent following arms-length negotiations with respect to an Assumed Lease (defined below) under the circumstances then pertaining. Assumed Lease means (i) a lease or renewal having a commencement date within 6 months of Tenant’s Notice for space of approximately the same size as the Premises, located in a portion of the Building or a Comparable Building (defined below), for a term equal in length to the Option Term; (ii) a real estate commission is payable with respect to such renewal or extension of the term to the extent a third-party commission with respect to such extension or renewal is agreed or obligated to be paid by Landlord; and (iii) taking into consideration and making adjustments to reflect that additional Rent is paid and allowances, if any, as provided in Landlord’s Notice. "Comparable Building" means any then-existing building in a 5-mile radius of the Building that is of a size, location, quality and prestige comparable to, and with a size and efficiency of floor plate, and amenities reasonably comparable with the Building, provided that appropriate adjustments shall be made to adjust for differences in the size, location, age, efficiency of floorplate, factoring out any specialized improvements to the Premises installed and paid for by Tenant, and quality of any Comparable Building and the Building.
Prevailing Market Rental Rate as used herein shall be that rate charged for comparable space and conditions by comparable office buildings in the Park Ten area of Houston, Texas (including the Building) taking into consideration the location, quality and age of the building, floor level, definition of rentable area, leasehold improvement allowances to be provided, parking charges, space planning, rentable abatement, lease takeovers and/or lease assumptions, relocation expenses and other applicable concessions, brokerage commissions, term of lease, extent of services to be provided, base year or figure for escalation purposes (both operating costs and real estate taxes), adjustments to base rental, applicable distinction between "gross" and "net" leases, credit standing and financial stature of the tenant, the time the particular rate under consideration became or is to become effective, or any other relevant term or condition. It is agreed that written offers to lease comparable space located elsewhere in the Building from third parties and leases completed in the Building within six (6) months prior to Tenant's exercise of its Renewal Option may be used by Landlord as an indication of the Prevailing Market Rental Rate.
Prevailing Market Rental Rate means the rental rate as would be accepted by a willing prospective tenant, taking into account the tenant's creditworthiness and the size of space to be leased, and accepted by a willing landlord for office space in the building and in other office buildings of like quality and size within a ten (10) mile radius of the Building. In determining the Prevailing Market Rental Rate, the appraiser or appraisers shall take into account that this Lease is a gross lease. Such appraiser or appraisers shall also take into account any additional services provided to Tenant, the cost of such services which are not included currently under the Lease or the increase in real estate taxes. The Prevailing Market Rental Rate shall be established by the following procedure:
Prevailing Market Rental Rate means the annual rental rate per rentable square foot less Operating Costs included in such rental rate then being paid under leases, including both original lease transactions and those resulting from renewals, in the Glenhardie Corporate Center in space comparable to the Premises. The Prevailing Market Rental Rate shall be determined as follows:
Prevailing Market Rental Rate means, as to any space subject to this Lease Agreement for which it is being determined (the “Subject Premises”), the annual amount of “gross” rental that a willing tenant would pay in a similar type transaction (i.e., renewal) and a willing landlord would accept in arm’s length, bona fide negotiations for lease of the Subject Premises to be executed at the time of determination and to commence on the commencement of the subject lease term, based upon other lease transactions made in the Building and other comparable office buildings in the Katy Freeway West area of Houston, Texas, taking into consideration all relevant terms and conditions of any comparable leasing transactions, including, without limitation: (i) location, quality and age of the building (taking into consideration renovations); (ii) use and size of the space in question; (iii) location and/or floor level within the building; (iv) extent of leasehold improvement allowances (considering existing improvements); (v) the amount of any abatement of rental or other charges; (vi) parking charges or inclusion of same in rental; (vii) lease takeovers/assumptions; (viii) club memberships; (ix) relocation allowances;
Prevailing Market Rental Rate means the rental rate, expressed as the annual amount per rentable square foot for a term equivalent to the period for which Prevailing Market Rental Rate is being determined and rental related terms beginning with the first (1st) day of the subject period that a willing, creditworthy, new, non-equity tenant leasing comparable space to Lessee's would pay and a willing, comparable landlord of an industrial complex comparable to the Complex located in the Chicago Metropolitan Industrial Market, includ- ing, Lake County, Indiana (the "Market") would accept at arms length, giving appropriate consideration to annual rental rate per rentable square foot, rental escalations (including type, base year and stops), length of lease term, size and location of the premises being leased and other generally applicable terms and conditions prevailing for comparable space in comparable industrial complexes located in the Market. It is hereby agreed between Lessor and Lessee that each party shall negotiate in good faith for a period of sixty (60) days subsequent to the date Lessor is in receipt of the Renewal Notice ("Negotiation Period") as to the Prevailing Market Rental Rate. In the event Lessor and Lessee are unable to agree upon the Prevailing Market Rental Rate, despite each party's good faith efforts, prior to the expiration of the Negotiation Period, Lessee's Renewal Option shall be deemed no longer to be of any force and effect.