2601 Main Street, Suite 530 · 2601-2603 Main Street
Irvine · office · 3,514 SF
Landlord proposal · 2601 Main Street, Suite 530, 2601-2603 Main Street
Generated by the ALEX agent from the owner's parameters. Every number below is negotiable.
Base rent
$39.00
/SF/yr
Term
3 yr
36 months
Free rent
2 mo
abated
TI allowance
$20
/SF
Escalation
3%
annual
$11,132/mo average · $444,974 all-in over the term
Effective rent $38.02/SF/yr after 2 months free. Build-out runs $44,220 past the $70,280 allowance.
Total base rent over term
$400,754
Operating expenses (FSG)
included in rate
Rent abatement (free rent)
− $22,841
Total lease cost
$400,754
Tenant build-out beyond allowance
$44,220
All-in cost of occupancy
$444,974
NPV @ 8%
$353,846
Security deposit
$22,842
Cash required at signing
$67,062
Cost by year
Year 1
$158,425
Year 2
$141,157
Year 3
$145,392
Year 4 (renewal)
$149,754
Year 5 (renewal)
$154,246
Year
Base rent
Free rent
Your build-out
Total
$/SF
Year 1
$137,046
- $22,841
$44,220
$158,425
$45.08
Year 2
$141,157
0
0
$141,157
$40.17
Year 3
$145,392
0
0
$145,392
$41.38
Year 4 (renewal)
$149,754
0
0
$149,754
$42.62
Year 5 (renewal)
$154,246
0
0
$154,246
$43.89
5-year total
$727,595
- $22,841
$44,220
$748,974
$42.63 avg
$/SF is what you pay that year divided by 3,514SF. 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 $36.66/SF
−$1,464/mo
A longer commitment is worth real money to the landlord. It justifies 6% off the face rent, 3 months free, and a $32/SF improvement allowance. This is usually the cheapest concession to win.
5-yr · $36.66/SF · 3 mo free · $32/SF TI · $10,896/mo all-in
Ask for 4 months free instead of 2
−$22,841 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 · $39.00/SF · 4 mo free · $20/SF TI · $11,726/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: $35.88/SF/yr effective.
Tenant agent
No stated tenant budget. ALEX targets 5% under the terms on the table ($10,575/mo).
ALEX
Zone of agreement found. Settling at $10,541/mo, midway between the constraints.
ALEX
Structure: 3 months free at $38.01/SF face. Abatement carries the concession so the headline rate stays as high as the target allows.
Landlord agent
TI allowance raised to $33/SF. The landlord's cap covers the modeled build-out in full.
ALEX
Settled package: $10,540/mo average, $35.99/SF/yr effective, inside both constraints.
✓ Deal reached · $10,540/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.