Common use of Determination of Market Rental Rate Clause in Contracts

Determination of Market Rental Rate. Commencing one hundred eighty (180) days prior to the deadline for Tenant to exercise each Renewal Option, Tenant shall have the right to request Landlord’s determination of the Base Rent for the upcoming Renewal Period. Landlord shall notify Tenant of its determination no later than thirty (30) days thereafter so that Tenant shall have sufficient time to decide whether to elect to renew the Lease. If, despite good faith negotiation, Landlord and Tenant cannot agree on the Base Rent for the upcoming Renewal Period on or before thirty (30) days prior to the deadline for Tenant to exercise its Renewal Option, then Tenant must nonetheless timely elect to exercise its Renewal Option and be bound by the result of the appraisal process described below. Upon Tenant’s exercise, Landlord and Tenant (within ten (10) days) shall each select an independent disinterested MAI appraiser, which appraisers shall complete their written appraisals of the Market Rental Rate within twenty (20) days thereafter. Landlord and Tenant shall each bear the costs of their respective appraisers. If the difference between the two appraisals is equal to or less than ten (10%) percent of the higher appraisal, then the average of such two appraisals shall be the Base Rent for the upcoming Renewal Period. If the difference between the two appraisals is more than ten (10%) percent of the higher appraisal, then the appraisers shall mutually select a third independent disinterested MAI appraiser (within ten (10) days). Such third appraiser shall then (within ten (10) days) make its determination of the Market Rental Rate of the Premises, and the average of such three appraisals shall be the Base Rent for the upcoming Renewal Period. Landlord and Tenant shall each pay one-half (1/2) of the fees and costs of such third appraiser. At a minimum, each of the MAI appraisers shall be disinterested commercial real estate appraisers doing business in the Kendall/South Miami area of Miami-Dade County, Florida, and properly licensed, with substantial experience in the Kendall/South Miami office markets. If the dispute is not finally resolved as of the commencement of the applicable Renewal Period, then Tenant shall pay the Base Rent for the Renewal Period for the immediately prior year, increased by CPI, until such dispute is finally resolved. Upon the final determination, then Tenant shall receive a credit, or Tenant shall promptly pay any underpayment to Landlord, as applicable, such credit or payment to be equal to the difference between the Base Rent then being paid by Tenant and the Base Rent that Tenant should have been paying, as determined by such appraisal process.

Determination of Market Rental Rate. Commencing one hundred eighty (180) days prior to the deadline for Tenant to exercise each Renewal Option, Tenant shall have the right to request Landlord’s determination of the Base Rent for the upcoming Renewal Period. Landlord shall notify Tenant of its determination no later than thirty (30) days thereafter so that Tenant shall have sufficient time to decide whether to elect to renew the Lease. If, despite good faith negotiation, Landlord and Tenant cannot agree on the Base Rent for the upcoming Renewal Period on or before thirty (30) days prior to the deadline for Tenant to exercise its Renewal Option, then Tenant must nonetheless timely elect to exercise its Renewal Option and be bound by the result of the appraisal process described below. Upon Tenant’s exercise, Landlord and Tenant (within ten (10) days) shall each select an independent disinterested MAI appraiser, which appraisers shall complete their written appraisals of the Market Rental Rate within twenty (20) days thereafter. Landlord and Tenant shall each bear the costs of their respective appraisers. If the difference between the two appraisals is equal to or less than ten (10%) percent of the higher appraisal, then the average of such two appraisals shall be the Base Rent for the upcoming Renewal Period. If the difference between the two appraisals is more than ten (10%) percent of the higher appraisal, then the appraisers shall mutually select a third independent disinterested MAI appraiser (within ten (10) days). Such third appraiser shall then (within ten (10) days) make its determination of the Market Rental Rate of the Premises, and the average of such three appraisals shall be the Base Rent for the upcoming Renewal Period. Landlord and Tenant shall each pay one-half (1/2) of the fees and costs of such third appraiser. At a minimum, each of the MAI appraisers shall be disinterested commercial real estate appraisers doing business in the Kendall/South Miami area of west Miami-Dade County, Florida, and properly licensed, with substantial experience in the Kendall/South Miami west Miami-Dade County, Florida office markets. If the dispute is not finally resolved as of the commencement of the applicable Renewal Period, then Tenant shall pay the Base Rent for the Renewal Period for the immediately prior year, increased by CPI, until such dispute is finally resolved. Upon the final determination, then Tenant shall receive a credit, or Tenant shall promptly pay any underpayment to LandlordLandlord within thirty (30) days of such determination, as applicable, such credit or payment to be equal to the difference between the Base Rent then being paid by Tenant and the Base Rent that Tenant should have been paying, as determined by such appraisal process.

Determination of Market Rental Rate. Commencing one hundred eighty Within ten (18010) days prior of Landlord’s receipt of a Renewal Notice, Landlord will notify Tenant (the “Rate Notice”) of the “Market Rental Rate” (defined below) determined in good faith and taking into consideration Tenant’s requested tenant improvement allowance. The Rate Notice shall be accompanied by all appropriate supporting documentation and calculations used to determine the Market Rental Rate. If Tenant agrees that the rental rate set forth in Landlord’s Rate Notice is the Market Rental Rate, such rental rate shall be the Market Rental Rate for purposes of this Section 16, and the Base Rent applicable to the deadline for Renewal Option will be the Market Rental Rate. If Tenant to exercise each Renewal Optiondisagrees with the rental rate set forth in the Rate Notice and both parties, negotiating in good faith, cannot within fifteen (15) days after Landlord gives the Rate Notice, agree on a revised rental rate that will serve as the Market Rental Rate, then Tenant shall have the right to request Landlord’s determination of the Base Rent for the upcoming either (i) rescind its Renewal Period. Landlord shall notify Tenant of its determination no later than Notice by notice given within thirty (30) days thereafter so that after Landlord gives the Rate Notice; or (ii) enter into a binding three (3) broker arbitration process (which shall not be subject to any further right of rescission) which process is more particularly described below in this Section 16.1. If Tenant fails to respond to the Rate Notice within fifteen (15) days after the date thereof, Tenant will be deemed to have rejected the Rate Notice and the Renewal Notice shall have sufficient time be deemed rescinded. If the parties are unable to decide whether agree upon the Market Rental Rate and, pursuant to elect this Section 16.1, Tenant elects to renew the Lease. Ifenter into binding arbitration, despite good faith negotiationthen, within seven (7) days following such election by Tenant, Landlord and Tenant cannot agree on will each appoint their own licensed real estate broker as well as a third mutually acceptable real estate broker or sales agents (the Base Rent for the upcoming Renewal Period on or before thirty (30“Brokers”) days prior to the deadline for Tenant to exercise its Renewal Option, then Tenant must nonetheless timely elect to exercise its Renewal Option and be bound by the result each of the appraisal process described below. Upon Tenant’s exercise, Landlord and Tenant (within whom has at least ten (10) days) shall each select an independent disinterested MAI appraiser, which appraisers shall complete their written appraisals of years experience in commercial office leasing in the Market Rental Rate within twenty (20) days thereafterSoutheast suburban Denver metropolitan area office market. Landlord and Tenant shall each bear the costs of their respective appraisers. If the difference between the two appraisals is equal to or less than ten (10%) percent of the higher appraisal, then the average of such two appraisals shall be the Base Rent for the upcoming Renewal Period. If the difference between the two appraisals is more than ten (10%) percent of the higher appraisal, then the appraisers shall mutually select a third independent disinterested MAI appraiser (within Within ten (10) days)days after the Brokers’ appointment, the Brokers shall each propose a Market Rental Rate, which must be determined in strict accordance with the terms of this Section 16. Such third appraiser The arithmetic mean (average) of the two (2) closest proposals shall then (within ten (10) days) make its determination of be deemed the Market Rental Rate of the Premises, and the average of such three appraisals shall be the Base Rent for the upcoming Renewal Period. Landlord and Tenant shall each pay one-half (1/2) of the fees and costs of such third appraiser. At a minimum, each of the MAI appraisers shall be disinterested commercial real estate appraisers doing business in the Kendall/South Miami area of Miami-Dade County, Florida, and properly licensed, with substantial experience in the Kendall/South Miami office markets. If the dispute is not finally resolved as of the commencement of the applicable Renewal Period, then Tenant shall pay the Base Rent for the Renewal Period for the immediately prior year, increased by CPI, until such dispute is finally resolved. Upon the final determination, then Tenant shall receive a credit, or Tenant shall promptly pay any underpayment to Landlord, as applicable, such credit or payment to be equal to the difference between the Base Rent then being paid by Tenant and the Base Rent that Tenant should have been paying, as determined by such appraisal processRate.