3 market rate or if the parties are unable to agree on a market rate, the parties will mutually select and engage a mediator. The cost of such mediator will be split equally between Lessor and Lessee.
5. Base Rent Schedule. The monthly Base Rent for the Premises shall be based on a Full-Service Gross Lease at Two Dollars and Seventy Cents ($2.70) per square foot based on the original square feet of the Current Premises leased by Lessee. The rent for the Expansion Premises shall be added to Base Rent when the Certificate of Occupancy is issued for the Expansion Premises (“Expansion Rent Commencement Date”). The Parties shall confirm the Expansion Rent Commencement Date in writing by the execution of the Date of Delivery Possession document attached hereto as Exhibit B. The Base Rent for the Premises shall be increased three percent (3%) annually on the anniversary of the Commencement Date (each a “Lease Year”) in accordance with the following schedule:
Period Monthly Base Rent
January 1, 2023 – Expansion Rent
Commencement Date or December 31,
2023, whichever is earlier
$37,627.20
If Expansion Commencement Date occurs
in the calendar Year 2023, then Expansion
Rent Commencement Date – December
31, 2023
$41,202.00
If Expansion Commencement Date occurs
in calendar Year 2024, then January 1,
2024 – Expansion Commencement Date
$38,756.02
If Expansion Commencement Date occurs
in the calendar Year 2024, then Expansion
Commencement Date – December 31,
2024
$42,438.00
January 1, 2025 – December 31, 2025 $43,711.00
January 1, 2026 – December 31, 2026 $45,022.00
January 1, 2027 – December 31, 2027 $46,373.00
January 1, 2028 (expiring on December
31, 2028)
$47,764.00
6. Concession. As an incentive for Lessee to enter into an early lease extension of the Lease, Lessor hereby grants to Lessee seven and one-quarter (7.25) months of free rent. Said free rent shall be credited in months two (2), three (3), thirteen (13), fourteen (14), twenty- five (25), twenty-six (26), thirty-seven (37) and a quarter (.25) month credit in month thirty-eight (38).
7. Parking. Lessee, which includes its employees, shall be allotted up to sixty- three (63) parking spaces (“Initial Parking Spaces”) in the parking structure attached to the Project. The cost of the Initial P arking Spaces which currently consist of thirty (30) reserved spaces at One Hundred Thirty-Five Dollars ($135.00) per space and eleven (11) unreserved spaces currently at Seventy Dollars ($70.00) per space, provided that during the Term such rates shall be adjusted to the lowest rate provided by Lessor to any other lessee in the Project. In the event Lessee requires additional parking spaces for its employees beyond the Initial Parking Spaces and so long as Lessor