Fair Market Rent Determination. The process to determine Fair Market Rent is as follows:
5.4.1 No later than 90 days and no more than 120 days before the beginning of a Period the Lessee will obtain an Appraisal (the “Lessee’s Appraisal”) for that Period and deliver a copy of the Lessee’s Appraisal to the Locatee.
5.4.2 If the Locatee does not agree with the Fair Market Rent determination in the Lessee’s Appraisal, then, within 120 days of receipt of the Lessee’s Appraisal, the Locatee will, at its own cost if subsection 5.4.6 does not apply, obtain an Appraisal (the “Locatee’s Appraisal”), a copy of which it will promptly deliver to the Lessee.
5.4.3 If the Fair Market Rent determination in the Lessee’s Appraisal is:
5.4.3.1 equal to or higher than the Locatee’s Appraisal, then Fair Market Rent is determined to be the amount in the Lessee’s Appraisal;
5.4.3.2 no more than 15.0% lower than the Locatee’s Appraisal, then Fair Market Rent is determined to be the amount in the Locatee’s Appraisal; or
5.4.3.3 more than 15.0% lower than the Locatee’s Appraisal, then the Locatee’s Appraiser and the Lessee’s Appraiser will promptly discuss the two appraisals so as to attempt to reconcile the differences between their Appraisals and jointly determine Fair Market Rent within 60 days of the delivery of the Locatee’s Appraisal to the Lessee, and, subject to subsection 5.4.6, the Locatee and the Lessee will each bear the costs for the work of their respective Appraisers under this subsection.
5.4.4 If the Appraisers are unable to jointly determine Fair Market Rent within the 60- day period set out in paragraph 5.4.3.3, then the Lessee and the Locatee will agree upon a third, independent Appraiser to promptly review the two Appraisals and determine Fair Market Rent, which determination is binding upon the Parties. Subject to subsection 5.4.6, the Locatee and the Lessee will each bear 50% of the costs for the work of the Appraiser under this subsection. When Fair Market Rent is determined under this subsection, the Locatee and the Lessee will promptly notify the Lessor of such amount. /Template Version 2019-02-13 5.4.5 If the Lessee fails to comply with subsection 5.4.1 in the time allowed, then the Locatee may at any later time obtain an Appraisal and determine Fair Market Rent based on the valuation in that Appraisal, which determination is binding on the Parties. When Fair Market Rent is determined under this subsection, the Locatee will promptly notify the Lessee and Lessor of such amount.
Fair Market Rent Determination. The Fair Market Rent shall be determined as follows:
i. In the event Lessor and Lessee are unable to agree upon a mutually acceptable Fair Market Rent by the date that is six (6) months prior to the expiration of the Initial Lease Term (the “Fair Market Deadline”), Lessor shall, within fifteen (15) days following the Fair Market Deadline, appoint an appraiser to complete an appraisal of the Fair Market Rent within thirty (30) days after the appointment of Lessor’s appraiser and Lessor shall deliver a copy thereof to Lessee promptly upon receipt by Lessor (“Lessor Appraisal”).
ii. If Lessee delivers notice to Lessor of Lessee’s disapproval of the Lessor Appraisal within fifteen (15) business days after Lessee’s receipt of the Lessor Appraisal, then Lessee shall have fifteen (15) days to select an appraiser to deliver an additional appraisal of the Fair Market Rent (the “Lessee Appraisal”). The Lessee Appraisal shall be delivered within thirty (30) days after the appointment of Lessee’s appraiser and Lessee shall deliver a copy thereof to Lessor promptly upon receipt by Lessee.
iii. If Lessor delivers notice to Lessee of Lessor’s disapproval of the Lessee Appraisal within fifteen (15) business days after Lessor’s receipt of the Lessee Appraisal, then Lessor and Lessee shall each cause their respective appraisers to jointly select a third appraiser, who shall be an independent appraiser of similar qualifications (the “Joint Appraiser”). If the two appraisers fail to select a Joint Appraiser within thirty (30) days following the date that Lessee received Lessor’s notice of disapproval of the Lessee Appraisal, either Lessor or Lessee may petition a court of competent jurisdiction to appoint a third appraiser. The Joint Appraiser shall, within fifteen (15) days after appointment, select either the Lessor Appraisal or the Lessee Appraisal as the Final Appraisal.
iv. Notwithstanding anything to the contrary herein, the Fair Market Rent for the Renewal Term shall not be less than the Base Rent in place at the expiration of the Initial Term and shall be either (i) the Fair Market Rent as expressed in either the Lessor Appraisal or the Lessee Appraisal, or (ii) the Fair Market Rent reflected in the Final Appraisal, as selected by the Joint Appraiser.
v. All appraisers appointed hereunder shall be, at the time of their appointment, members of good standing of the American Institute of Real Estate Appraisers. The party whose appraisal the Joint Appraiser did not select...
Fair Market Rent Determination. If Tenant elects to proceed with the process for determining the Fair Market Rent, then the Fair Market Rent shall be determined in accordance with the following procedures. Within fifteen (15) days after Tenant delivers notice to Landlord of Tenant’s election to so proceed, Landlord and Tenant shall each select a real estate professional (based on the criteria set forth in this Section 2.3.3.7). Within thirty (30) days of their selection, each professional shall make a written determination to Landlord and Tenant of the Fair Market Rent. All determinations of the Fair Market Rent shall be in writing. The party appointing each professional shall be obligated, promptly after receipt of the valuation report prepared by the professional appointed by such party, to deliver a copy of such valuation report to the other party.
Fair Market Rent Determination.
(a) If Tenant timely exercises a Renewal Option, Landlord shall send to Tenant, within fifteen (15) days of Landlord’s receipt of Tenant’s exercise notice, a notice (the “Fair Market Value Rental Notice”) setting forth Landlord’s designation of the fair market value of Base Rent for the Premises for the applicable Extension Term (the “Fair Market Value Rental”). Landlord and Tenant shall promptly commence negotiations in an effort to reach a mutually acceptable determination of the Fair Market Value Rental. If, within thirty (30) days after the date of the Fair Market Value Rental Notice, Landlord and Tenant have not agreed upon in writing a mutually acceptable Fair Market Value Rental, then, by the close of business on the tenth (10th) business day following the end of such 30-day period each of Landlord and Tenant will submit to the other its final proposed Fair Market Value Rental. If either party fails to timely submit its final proposed Fair Market Value Rental to the other as required above, then the Fair Market Value Rental shall be deemed to be that submitted by the party who has so timely acted.
Fair Market Rent Determination. The fair market rent of the Premises as of the commencement of each Extended Term shall be determined as follows. Within fifteen (15) days after Landlord's receipt of the Extension Notice, Landlord shall notify Tenant of Landlord's reasonable opinion of the fair market rental value of the Premises. If Landlord and Tenant do not agree as to such fair market rental value within fifteen (15) days of Tenant's receipt of Landlord's notice, the fair market rental value shall be determined pursuant to the procedures set forth below.
Fair Market Rent Determination. If Tenant timely exercises the applicable Renewal Option, Landlord shall send to Tenant, within fifteen (15) days of Landlord’s receipt of Tenant’s exercise notice, a notice (the “Fair Market Value Rental Notice”) setting forth Landlord’s designation of the fair market value of Base Rent for the Premises for the first year of the applicable Renewal Period (the “Fair Market Value Rental”). For purposes hereof, “Fair Market Value Rental” shall mean the arms-length, fair-market, annual rental rate per rentable square foot under extension and renewal leases and amendments entered into on or about the date on which the Fair Market Value Rental is being determined hereunder for space comparable to the Premises in the Building and office buildings comparable to the Building in the Columbus, Ohio area. The determination of Fair Market Value Rental shall take into account any material economic differences between the terms of the Lease and any comparison lease or amendment, such as rent abatements, construction costs and other concessions, and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes. Landlord and Tenant shall promptly commence negotiations in an effort to reach a mutually acceptable determination of the Fair Market Value Rental. If, within thirty (30) days after the date of the Fair Market Rental Value Notice, Landlord and Tenant have not agreed upon in writing a mutually acceptable Fair Market Value Rental, then, by the close of business on the tenth (10th) business day following the end of such 30-day period each of Landlord and Tenant will submit to the other its final proposed Fair Market Value Rental. If either party fails to timely submit its final proposed Fair Market Value Rental to the other as required above, then the Fair Market Value Rental shall be deemed to be that submitted by the party who has so timely acted.
Fair Market Rent Determination. For purposes of this provision, the term “Subject Premises” shall be deemed to refer to (a) the Demised Premises for purposes of Article 7 hereof, and (b) the Available Offer Space for purposes of Article 35 hereof. For purposes of this provision, the term “Effective Date” shall be deemed to refer to (x) the first day of the Renewal Term for purposes of Article 7, and (y) the Available Offer Space Commencement Date for purposes of Article 35.
Fair Market Rent Determination. (A) The term “Fair Market Rent” shall mean the annual fair market rental value of the New Premises. The Fair Market Rent shall be determined assuming that the New Premises is free and clear of all leases and tenancies (including this Lease), that the New Premises is available for the purposes permitted by this Lease in the then rental market, that Landlord has had a reasonable time to locate a tenant, and that neither Landlord nor the prospective tenant is under any compulsion to rent, that the condition of the New Premises is in compliance with the terms of this Lease, and taking into account all other relevant factors.
Fair Market Rent Determination. The process to determine Fair Market Rent is as follows:67
4.4.1 No later than 90 days and no more than 120 days before the beginning of a Period, the Lessee will obtain an Appraisal (the “Lessee’s Appraisal”) to determine Fair Market Rent for that Period and provide a copy of it to each of the Lessor and the First Nation. The Lessee’s choice of Appraiser (the “Lessee’s Appraiser”) and terms of reference for the Appraisal must be approved of in advance by each of the Lessor and the First Nation. The Lessee’s Appraisal 66 This is a “ratchet clause” – rent can go up with market increases, but it will not fall with market declines. It is common in leases on reserve, but not universal. Although this could represent a bonus for First Nations in declining markets, in a long-term declining market it can cause Annual Rent to become uneconomic for a Lessee. In that case, the Parties may choose to renegotiate the Annual Rent for at least that Period to provide relief to the Lessee if they wish to maintain a good long-term commercial relationship.
Fair Market Rent Determination
