Common use of Determination of Base Rent Clause in Contracts

Determination of Base Rent. If the difference between the dollar amount of Lessor’s Appraisal and the dollar amount of Lessee’s Appraisal is equal to or less than 10%, then the Land Value shall be deemed to be the mathematical average of the two appraisals. See the following example of a scheduled Market Adjustment for a 50,000 square foot lease, at a 6% lease rate with two different appraisal values: Lessor Appraisal = $6.50 per square foot Lessee Appraisal = $6.10 per square foot Land Value= $6.30 per square foot New Annual Base Rent = $6.30 x 50,000 (or applicable square footage) x 6% (or applicable Lease Rate) = $18,900. If the difference between the dollar amount of Lessor’s Appraisal and the dollar amount of Lessee’s Appraisal is greater than 10%, then:

Appears in 12 contracts

Samples: Lease Agreement, Lease Agreement, Lease Agreement

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