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Below is an AI-powered analysis of your commercial lease document - None. This analysis was prepared for None and completed in just 2.3 seconds.
Key Financial Terms
Attorney-Reviewed Analysis
Base Rent
$32.50/sq ft
Annual Escalation
3%
Lease Type
NNN
Term Length
5 years
TI Allowance
$35.00 per square foot ($175,000 total)
Security Deposit
$65,250 (2 months rent)
Escalation Analysis
Escalation Type
Fixed Percentage
Escalation Frequency
Annual
Escalation Clause Excerpt
Base Rent shall increase on each anniversary of the Commencement Date by three percent (3%) of the Base Rent payable during the immediately preceding year.
Risk Assessment
medium Risk
- A 3% annual escalation is slightly above market average for this area (typical range: 2-2.5%).
NNN Cost Analysis
NNN Structure
Full NNN Lease - Tenant responsible for all operating expenses including taxes, insurance, and maintenance.
Taxes
$8.75/sq ft
Insurance
$2.50/sq ft
CAM
$5.25/sq ft
Hidden Cost Alert
No cap on CAM increases - tenant responsible for unlimited increases. Consider negotiating a maximum annual increase of 3-5% on controllable expenses.
Total Effective Rent
Year 1: $49.00/sq ft ($32.50 Base + $16.50 NNN)
Year 5: $55.95/sq ft ($37.65 Base + $18.30 NNN)
Year 5: $55.95/sq ft ($37.65 Base + $18.30 NNN)
Negotiation Recommendations
- Request a cap on CAM increases of 3-5% annually for controllable expenses
- Consider negotiating a lower escalation rate (2.5% instead of 3%)
- Request a right to audit NNN expenses
- Seek market data to verify if the base rent is competitive