First Offer Rent Clause Samples
The First Offer Rent clause establishes a process by which a tenant is given the initial opportunity to lease additional space or renew their current lease before the landlord offers it to other prospective tenants. Typically, this clause outlines the terms under which the tenant can exercise this right, such as the timeframe for responding to the landlord’s offer and the method for determining the rental rate. Its core practical function is to provide the tenant with a preferential position in securing desired premises, thereby offering stability and planning certainty while also streamlining the leasing process for both parties.
First Offer Rent. The Basic Rent payable by Tenant for the First Offer Space (the “First Offer Rent”) during the First Offer Term (as defined below) shall be the Market Rate (as defined below) for the First Offer Space, valued as of the commencement of the First Offer Term, determined in the manner hereinafter provided. As used in this Exhibit K, the term “Market Rate” shall mean the annual amount of Basic Rent at which tenants, as of the commencement of the First Offer Term, are leasing non-sublease, non-encumbered, non-equity space under then-prevailing ordinary rental market practices (e.g., not pursuant to extraordinary EXHIBIT K 1 Second & Spring Avalara, Inc. rental, promotional deals or other concessions to tenants that deviate from what is the then-prevailing ordinary practice), at arm’s length, that is comparable to the First Offer Space within the Building or in Comparison Buildings, based upon binding lease transactions for tenants in the Comparison Buildings that, where possible, commence or are to commence within six (6) months prior to or within six (6) months after the commencement of the First Offer Term (as used in this Exhibit K, the “Comparison Leases”). Rental rates payable under Comparison Leases shall be adjusted to account for variations between this Lease and the Comparison Leases with respect to: (a) the length of the First Offer Term compared to the renewal or extension term of the Comparison Leases; (b) rental structure, including, rental rates per rentable square foot (including type, gross or net, and if gross, adjusting for base year or expense stop), additional rental, annual rent adjustments, escalation provisions, all other payments and escalations; (c) the size of the First Offer Space compared to the size of the premises of the Comparison Leases; (d) free rent, moving expenses and other cash payments, allowances or other monetary concessions affecting the rental rate; (e) the age and quality of construction of the buildings; and (f) leasehold improvements and/or allowances, taking into account the value of existing leasehold improvements to the existing tenant.
First Offer Rent. The annual Rent payable by Tenant for the Offer Space leased by Tenant (the “First Offer Rent”) shall be equal to the “Fair Rental Value”, as that term is defined and determined in Section 2.3.2 and Section 2.3.4 below, for the Offer Space during the First Offer Term.
First Offer Rent. The annual Rent payable by Tenant for the Offer Space leased by Tenant (the “First Offer Rent”) shall be equal to one hundred percent (100%) of the annual Fair Market Value of the Offer Space as of the date that Tenant gives a First Offer Exercise Notice (which date shall be the “Calculation Date” with respect to the First Offer Space).
First Offer Rent. The rent payable by Tenant for the applicable First Offer Space (the “First Offer Rent”) shall be equal to the “Fair Market Rent,” as that term is defined in this Section 1.2.3, for the applicable First Offer Space. The “Fair Market Rent” shall be equal to the rent (including additional rent and considering any “base year” or “expense stop” applicable thereto), including all escalations, at which tenants, as of the “First Offer Commencement Date,” as that term is defined in Section 1.2.5, below, are leasing non-sublease, non-encumbered, non-equity, non-renewal, non-expansion space comparable in size, location and quality to the applicable First Offer Space, for a similar lease term, in an arms length transaction, in transactions consummated within the six (6) month period preceding Landlord’s delivery of the First Offer Notice, and which comparable space is located in the Project (the “Comparable Transactions”), taking into consideration only the following concessions (the “Concessions”): (i) rental abatement concessions, if any, being granted such tenants in connection with such comparable space, (ii) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the First Offer Space, such value to be based upon the age, condition, design, quality of finishes, and layout of the improvements and the extent to which the same can be utilized by a general office user, and (iii) other reasonable monetary concessions, if any, being granted such tenants in connection with such comparable space, provided, however, that notwithstanding anything to the contrary herein, no consideration shall be given to the fact that Landlord is or is not required to pay a real estate brokerage commission in connection with Tenant’s exercise of its right to lease the First Offer Space or in connection with the Comparable Transactions. The Fair Market Rent shall additionally include a determination (the “Financial Security Determination”) as to whether, and if so to what extent, Tenant must provide Landlord with financial security, such as a letter of credit or guaranty, for Tenant’s rent obligations in connection with Tenant’s lease of the Premises during the “First Offer Term,” as that term is defined in Section 1.2.5, below. Such determination shall be made by reviewing the extent of financial security then generally being imposed in Comparable Transactions from tenants of comp...
First Offer Rent. Notwithstanding anything to the contrary in Section 43(a), the First Offer Rent set forth in the First Offer Notice for the portion of the Available First Offer Space comprising the 331 Premises only shall be equal to the Base Rent hereunder for the initial Lease Term set forth herein. If the term of the Available First Offer Space extends beyond the initial Lease Term set forth herein, then for the period of time commencing on the date immediately following the expiration of the initial Lease Term herein through the expiration of the term set forth in the First Offer Notice, the base rent for the 331 Premises shall equal the base rent for the remainder of the Available First Offer Space. Except for the First Offer Rent as set forth herein, all other terms of the First Offer Notice shall apply to the entirety of the Available First Offer Space, including the 331 Premises.
First Offer Rent. The "Rent," as that term is defined in Section 4.1 of the Office Lease, payable by Tenant for the First Offer Space (the "First Offer Rent") shall be equal to the Market Rent, as applicable to the First Offer Space.
First Offer Rent. The annual "Rent," as that term is defined in Section 4.1 of this Lease, payable by Tenant for the First Offer Space (the "First Offer Rent") shall be equal to the "Fair Rental Value," as that term is defined in Section 2.2.3 of this Lease, for the First Offer Space for the "First Offer Term," as that term is defined in Section 1.4.5 of this Lease.
First Offer Rent. The Rent payable by Tenant for the Accepted Space (the "FIRST OFFER RENT") shall be equal to the greater of (i) the same per rentable square foot rate at which "Rent" is payable by Tenant under this Lease as of the "First Offer Commencement Date" (as that term is defined below), which per rentable square foot Rent rate shall also include all applicable escalations made or to be made during the Term (but expressly excluding all abatements, allowances and concessions), or (ii) the face or stated rent (and all other tenant payments) being quoted by Landlord per rentable square foot (excluding all abatements, allowances and concessions) for the lease of comparable space in the Building to be occupied as of the time of the First Offer Commencement Date, including the initial year and all applicable escalations being quoted by Landlord in connection therewith. Tenant expressly acknowledges that the "First Offer Rent" payable with respect to the Accepted Space includes Base Rent, as well as also including all payments and pass-throughs for Additional Rent for all other items payable by Tenant under this Lease (including, without limitation, the Tax Amount, Tenant's cost for electricity (at Landlord's discretion, either by submetering and/or by an additional ERIF charge), the Expense Escalation and the Operating Expense Amount, as such items are applicable to, and will be applied on a per rentable square foot basis to, the Accepted Space), plus all other sums or amounts as may be set forth in the applicable First Offer Notice.
First Offer Rent. The Base Rent payable by Tenant for the First Offer Space (the "First Offer Rent") shall be equal to the greater of (i) the Base Rent rate per rentable square foot payable by Tenant for the initial Premises, subject to adjustment at the same time as and pursuant to the same schedule for the initial Premises as set forth in Section I.D of the Lease and Section I of this Exhibit E, or (ii) the Prevailing Market for First Offer Space (defined in Section II.H below). If Landlord determines in the First Offer Notice that the First Offer Rent shall be the Prevailing Market for First Offer Space, then concurrent with Tenant's delivery of Tenant's Election Notice exercising such right of first offer, Tenant may object in writing to Landlord's determination of the Prevailing Market for First Offer Space set forth in the First Offer Notice, in which case the Prevailing Market for First Offer Space shall be determined in accordance with the procedures set forth in Section II.I below. If Tenant does not timely object in writing to Landlord's determination of the Prevailing Market for First Offer Space, then Tenant shall be deemed to have accepted such determination and the procedures in Section II.I below shall not apply.
First Offer Rent. The rent payable by Tenant for the applicable First Offer Space (the “First Offer Rent”) shall be “Fair Market Rent” for such First Offer Space, as determined in accordance with the terms of Section 2.2.3 of this Lease as if (i) the term “Option Term” was “First Offer Term” (as defined below), (ii) the term “Option Rent” was “First Offer Rent,” (iii) the term “Option Rent Notice” was “First Offer Notice,” and (iv) the terms “Premises,” “Tranche” or “floor” was “First Offer Space.”