Calculation of Base Rent Clause Samples
The Calculation of Base Rent clause defines how the fundamental rent amount payable by the tenant is determined under a lease agreement. Typically, this clause outlines the formula or method used to calculate the base rent, which may be a fixed amount, a rate per square foot, or based on another measurable factor such as a percentage of sales. By clearly specifying the calculation method, this clause ensures both parties understand the financial obligations involved and helps prevent disputes over rent payments.
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Calculation of Base Rent. The Base Rent will be increased on the first day of the Extension to the fair rental value of the Leased Premises (the "Fair Rental Value"), determined in the following manner:
(a) The Fair Rental Value shall be the value agreed on by Landlord and Tenant prior to the date the Extension Option is required to be exercised, if Landlord and Tenant are able to agree.
(b) If Landlord and Tenant have not been able to agree on the Fair Rental Value prior to the date the Extension Option is required to be exercised, the Base Rent for the Extension shall be determined in accordance with this subparagraph (b). Within fifteen (15) days following the exercise of the Extension Option, Landlord and Tenant each shall appoint one appraiser. Within ten (10) days after the two appraisers are appointed, they will appoint a third appraiser. If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed will determine the Fair Rental Value of the Leased Premises in accordance with Section 2(c) below and such other standards used by qualified appraisers in the Dallas-Fort Worth area as may be appropriate. If the two appointed appraisers fail to agree on the third appraiser, the third appraiser will be appointed by the then president of the Greater Dallas Board of Realtors, and all three appraisers will determine the Fair Rental Value of the Leased Premises in accordance with Section 2(c) below and such other standards used by qualified appraisers in the Dallas-Fort Worth area as may be appropriate. Each party will bear the cost of the appraiser appointed by it and the parties will share equally the cost of the third appraiser. All appraisers will be qualified to determine the Fair Rental Value of the Leased Premises.
Calculation of Base Rent. Subject to proration as set forth above, Lessee shall pay Base Rent during each Lease Year of this Agreement in the amounts set forth on Schedule 3.1.1(b) attached hereto and made a part hereof.
Calculation of Base Rent. Payments of Base Rent shall be calculated and become due as follows:
(i) for all Base Rental Periods subject to a LIBOR Period Election of 30 days, 60 days, or 90 days, all Base Rent shall be due on the Base Rental Date upon which the Base Rental Period ends. The Base Rent for each such Base Rental Period shall equal (A) Stipulated Loss Value on the first day of such Base Rental Period, times (B) the sum of (1) the Effective Rate with respect to such Base Rental Period plus (2) the Spread in effect during such Base Rental Period, times (C) the number of days in such Base Rental Period, divided by (D) three hundred sixty (360).
(ii) For Base Rental Periods subject to a LIBOR Period Election of greater than 90 days, Base Rent shall be payable in two or more installments, with an installment becoming due on (1) each Base Rental Date that occurs during the Base Rental Period (other than the Base Rental Date upon which the Base Rental Period begins) and (2) the Base Rental Date upon which the Base Rental Period ends. The amount of each such installment shall be equal to (A) Stipulated Loss Value on the first day of such Base Rental Period, times (B) the sum of (1) the Effective Rate with respect to such Base Rental Period plus (2) the Spread in effect during the period from and including the preceding Base Rental Date to but not including the Base Rental Date upon which the installment is due, times (C) the number of days in the period from and including the preceding Base Rental Date to but not including the Base Rental Date upon which the installment is due, divided by (D) three hundred sixty (360). Assume, only for the purpose of illustration: that a hypothetical Base Rental Period contains exactly sixty days; that on the first day of such Base Rental Period, after deducting a total of $12,000,000 of Qualified Payments received by Landlord, the resulting Stipulated Loss Value is $40,000,000; that the Effective Rate computed with respect to the applicable Base Rental Period is 5.5%; and that the Spread computed with respect to the applicable Base Rental Period is 0.5%. Under such assumptions, the Base Rent for the hypothetical Base Rental Period will equal: $40,000,000 x (5.5% + 0.5%) x 60/360, or $400,000.
Calculation of Base Rent. The Base Rent each year shall be based on the Landlord’s actual annual debt service related to the following costs:
Calculation of Base Rent. (1) Commencing on the Commencement Date, Base Rent payable to Landlord by Tenant for the Premises shall be Dollars ($ ) per annum for the Initial Lease Year which shall be escalated annually for each subsequent Lease Year at the rate of the greater of the greater of 3% annually or the CPI Adjustment, per annum of the Base Rent for the previous year.
Calculation of Base Rent. Section 3(b) of the Lease is deleted in its entirety and replaced with the following:
Calculation of Base Rent. Lessee shall pay Base Rent to Lessor in an annual amount equal to the “Applicable Rate,” as set forth in the table below, multiplied by the Lease Basis.
Calculation of Base Rent. The Base Rent during each Extension shall be increased, as of the commencement of each Extension (each is called a "Rental Adjustment Date") to ninety-five percent (95%) of the "Fair Market Value" of the Premises, determined in the following manner: Not later than one hundred (100) days prior to any applicable Rental Adjustment Date, Landlord and Tenant shall meet in an effort to negotiate, in good faith, the Fair Market Value of the Premises as of such Rental Adjustment Date. If Landlord and Tenant have not agreed upon the Fair Market Value of the Premises at least ninety (90) days prior to the applicable Rental Adjustment Date, the Fair Market Value shall be determined by the following appraisal method:
Calculation of Base Rent. Payments of Base Rent shall be calculated as follows:
(i) Amount Payable for Base Rent Periods BEFORE the Base Rent Commencement Date (For All Buildings). The Base Rent for any Base Rent Period that ends on or prior to the Base Rent Commencement Date (For All Buildings) shall equal the sum of (1) the Base Rent (Existing Buildings Land) accruing for such period, (2) any Base Rent (Building 6 Land) accruing for such period, (3) any Base Rent (Building 7 Land) accruing for such period and (4) any Base Rent (Building 8 Land) accruing for such period. For any Base Rent Period ending on or before the Base Rent Commencement Date (For All Buildings) the Base Rent (Existing Buildings Land) shall equal: - the Stipulated Loss Value on the first day of such Base Rent Period, times - the Existing Buildings Land Percentage, times - a rate equal to the Secured Spread, plus the Effective Rate for such Base Rent Period, times
Calculation of Base Rent. The chart included in Section 4.1 of the Lease is deleted in its entirety and replaced with the following: Months 1 to 2 $ [ **] Months 3 - December 31, 2012 $ [ **] January 1, 2013 to December 31, 2013 $ [ **] January 1, 2014 to December 31, 2014 $ [ **] January 1, 2015 to December 31, 2015 $ [ **] January 1, 2016 to December 31, 2016 $ [ **] Monthly Base Rent shall be equal to one twelfth of the Annual Base Rent multiplied by the Rentable Area of the Premises.