Landlord proposal · Suite 1800, 10940 Wilshire Blvd
Generated by the ALEX agent from the owner's parameters. Every number below is negotiable.
Base rent
$60.00
/SF/yr
Term
3 yr
36 months
Free rent
2 mo
abated
TI allowance
$0
/SF
Escalation
3%
annual
$30,817/mo average · $1,109,396 all-in over the term
Effective rent $58.48/SF/yr after 2 months free. The $0 allowance covers the modeled build-out.
Total base rent over term
$1,109,396
Operating expenses (FSG)
included in rate
Rent abatement (free rent)
− $63,230
Total lease cost
$1,109,396
Tenant build-out beyond allowance
$0
All-in cost of occupancy
$1,109,396
NPV @ 8%
$979,540
Security deposit
$63,230
Cash required at signing
$63,230
Cost by year
Year 1
$316,150
Year 2
$390,761
Year 3
$402,484
Year 4 (renewal)
$414,559
Year 5 (renewal)
$426,996
Year
Base rent
Free rent
Your build-out
Total
$/SF
Year 1
$379,380
- $63,230
0
$316,150
$50.00
Year 2
$390,761
0
0
$390,761
$61.80
Year 3
$402,484
0
0
$402,484
$63.65
Year 4 (renewal)
$414,559
0
0
$414,559
$65.56
Year 5 (renewal)
$426,996
0
0
$426,996
$67.53
5-year total
$2,014,180
- $63,230
$0
$1,950,950
$61.71 avg
$/SF is what you pay that year divided by 6,323SF. Your build-out is the cost above the landlord's allowance, paid in year 1. The lease is 3 years. From year 4 on, the figures assume a renewal at the escalated rate (3.0% a year, no new free rent or allowance). Renewal terms are not agreed.
ALEX suggests these counters
Go to a 5-year term for $56.40/SF
−$747/mo
A longer commitment is worth real money to the landlord. It justifies 6% off the face rent, 3 months free, and a $0/SF improvement allowance. This is usually the cheapest concession to win.
5-yr · $56.40/SF · 3 mo free · $0/SF TI · $30,070/mo all-in
Ask for 4 months free instead of 2
−$63,230 all-in
Landlords guard the headline rate because it sets building value, but they will often concede abatement. This cuts your first-year cost without touching the face rent.
3-yr · $60.00/SF · 4 mo free · $0/SF TI · $29,060/mo all-in
Two-agent negotiation
ALEX runs a landlord agent (holding the owner's floor) and a tenant agent (holding the budget) and settles the deal between them.
Landlord agent
Landlord's stated floor: $55.20/SF/yr effective.
Tenant agent
No stated tenant budget. ALEX targets 5% under the terms on the table ($29,276/mo).
ALEX
Zone of agreement found. Settling at $29,181/mo, midway between the constraints.
ALEX
Structure: 3 months free at $58.48/SF face. Abatement carries the concession so the headline rate stays as high as the target allows.
ALEX
Settled package: $29,180/mo average, $55.38/SF/yr effective, inside both constraints.
✓ Deal reached · $29,180/mo
Both sides land inside their limits. Apply it to load the settled terms into the proposal above.
The landlord reviews and approves before any proposal is issued to you.
Formal proposal letter (LOI)
Illustrative proposal generated from the owner's stated parameters and a modeled build-out. Not a binding offer; the landlord approves any proposal before it is issued.
What security will the landlord require?
Landlords underwrite the tenant before signing. Enter your financials and ALEX tells you the deposit, letter of credit, or guaranty you should expect before you share anything with the landlord.
Heads up:the base rent here starts from ALEX's market estimate, because this building came from the public record and has no quoted asking rate. Once the owner claims the listing and publishes real terms, this proposal runs on their actual numbers.