The landlord typically provides each space in a standard “white box” condition. Based on the tenant’s needs, the landlord may instead provide an allowance that represents the estimated cost of bringing the space to a standard “white box” condition. Tenant would be responsible for costs in excess of the white box finish. A cost estimate would be prepared for any interested tenant based on a preliminary space layout.
Standard white box includes:
- Standard Ceilings
- Concrete Floor
- Perimeter Wall(s)
- Restroom(s) as required by code
- HVAC Unit (sized to the white box space and distributed)
- Electric Service (distributed to the white box space per code)
- Fire Protection (for the white box space as required by code)
- Available tenant spaces are ready for tenant finishes.
The timing of occupancy is dependent upon receiving municipal approval(s), finalizing the layout, and building out the space, which varies based on the level of finishes desired by the tenant.
The length of lease term is negotiable, with a minimum five-year term required. Annual base lease rates range from $15.00 to $19.00 per sq. ft. depending on the amount of leased space, the location of the space, and the lease term. Lease rates typically increase by 3% at the beginning of each new lease year.
Typical leases are structured on a “triple-net” basis, with shared expenses estimated between $3.00 and $5.00 per sq. ft. for the initial years of the lease. Shared expenses typically include, but are not limited to, common area maintenance costs, public utilities, insurance, and real estate taxes.