We have submitted a lease proposal to 668 Guerrero, received initial pushback, and drafted a counter offer. The initial redline and current counter are linked below. I plan to send the counter by Monday morning, so if you have any opinions please comment.
Original Proposal & Redline
Guerrero 668 - Noise Bridge_LL Counter.pdf (148.4 KB)
Proposed Counter offer
guerrero_revised_05.19.19.pdf (127.7 KB)
So main difference I’m seeing in the counter vs the redline is:
- starting at 10k instead of 11k a month
- in option to purchase, you wrote that we can apply 50% of paid rent to the purchase price (cool idea)
- we have lowered the security deposit from 20k to 15k and made the initial deposit 25k instead of 20k, which includes the first month rent.
- added estimated costs to property insurance
- wrote in the lease that we will be installing ada bathrooms
There’s strange text in the utilities area “Tenant shall pay all separately metered utilities and separately billed services including but limited to water, electricity and garbage”.
I’ve never seen “included but limited to”, did you mean “included but NOT limited too?”
These all seem like reasonable pushes in negotiation to a lease. I really love the Guerrero space and hope we can indeed get it. Thank you Tyler!
it doesn’t say “included but not limited too”. Read it closely. It says “included but limited too”. I guess it was just a copy editing thing
so I don’t see anything in here for beyond 3 years. What about an option to renew it? Or some terms for how we could stay there longer?
“Year 3 and after: 13,000” ?
Owner suggested three years. But we can try $13,000 for year 4. I think he is mostly interested in selling the building.
I was going to send this draft out today with changes we talked about. Mark (RE agent) was asking for someone to docusign this version (while noting that it is still not a legal contract). I am happy to sign, but wanted to check and see if there any protocol for this?
Note: binding as a term sheet, but not a real lease contract. Pretty much saying we are comfortable with the terms as laid out here.
I think that ‘including but not limited to’ is just to cover some additional things like Natural Gas, or Recycling. I think that will be cleaned up at the end when we are sure what the utilities will be.
Also with the ‘early access’ section, as soon as we sign the lease and pay the deposit, we are good to start moving stuff in and remodeling how we see fit (subject to required construction permits). The first thing we do will be to rebuild the bathrooms. But that is kinda like two months of free rent!
I will have this proposal sent out tomorrow morning. And also pushing to see if they are potentially interested in a 5 year lease. I really love the space too, and I hope we get it.