Lease Proposal

The Lease Proposal document is a non-binding proposal for a lease agreement between Party 1 and Party 2. The document starts with an introduction, addressing Party 2 and presenting the terms and conditions of the lease proposal. It includes information about the landlord (Party 1) and the tenant (Party 2), as well as the leased premises. The lease term is specified to be a certain number of years, starting from the lease commencement date.

 

The document also outlines the rent schedule, which includes the base rent per month and the percentage increase after each twelve-month period. It mentions a base rent abatement period of two months, during which the tenant can complete any necessary improvements to the premises. The tenant is responsible for paying its pro-rata share of operating expenses for the building, as well as separately metered utilities.

 

The landlord agrees to replace the carpet and rubber base and repaint the walls throughout the premises at their expense. The tenant, on the other hand, is responsible for installing a second restroom on the first floor of the building at their own cost. The document specifies that all work must be completed by a bonded, licensed, and insured contractor.

 

In terms of financials, the tenant is required to prepay the first month's rent and provide a security deposit equal to the amount of the last month's rent. The permitted use of the premises is mentioned, as well as the tenant's exclusive use of the parking stalls at the property. The tenant is also allowed to install signage on the building, subject to approval by the landlord and compliance with local laws.

 

The document concludes with a representation that the landlord is represented by a licensed real estate broker and a statement that the terms and conditions are not binding until a lease agreement and related documents have been prepared, approved, and fully executed by both parties. The proposal is subject to tenant's review and approval of their financial information and may be withdrawn at any time.

 

If the terms and conditions meet with Party 2's approval, they are requested to execute the proposal and return it within 15 days from the date of the proposal.

How to use this document?

To use the Lease Proposal document, follow these steps:

1. Review the entire document to understand the terms and conditions proposed by Party 1.

2. Assess the lease term, including the start date and duration, to ensure it aligns with your needs.

3. Consider the rent schedule and the base rent abatement period, which allows you time to complete any necessary improvements to the premises.

4. Understand your responsibility for operating expenses and separately metered utilities, as well as the estimated costs.

5. Evaluate the landlord's commitment to replacing the carpet and rubber base and repainting the walls, as well as your responsibility for installing a second restroom.

6. Calculate the prepaid rent and security deposit required at lease execution.

7. Confirm that the permitted use of the premises aligns with your intended purpose.

8. Assess the availability of parking stalls for your exclusive use.

9. Determine if you want to install signage on the building and ensure compliance with local laws.

10. Consider the representation of the landlord by a licensed real estate broker.

11. Understand that the terms and conditions are not binding until a lease agreement and related documents have been fully executed.

12. If the terms and conditions meet your approval, execute the proposal and return it to Party 1 within 15 days from the date of the proposal.