Question
An owner of the Almoayed tower office building is currently negoti ating a five year lease with AKME consolidated corporation for 35 000 rentable square
An owner of the Almoayed tower office building is currently negotiating a five year lease with AKME consolidated corporation for 35000 rentable square feet of space. AKMEwould like a base rent of BD: 32 per square foot with step ups of BD: 2 per year beginning one year from now. Almoayed would provide full service under the lease terms. The owner of Almoayed believes that the BD: 32 lease is too low and is trying to negotiate BD: 35 per square feet with the same step ups. However, Almoayed would provide AKME with a BD: 30000 move in allowance and BD: 60000 in tenant improvement if the lease at BD: 35 per square feet is signed.
AKME informs Almoayed that is has 1 year remaining on its existing 35000 square foot lease in an older building atBD:18per square foot. AKME is willing to pay Almoayed BD: 34 per square foot with step ups on the new lease, but is demanding that Almoayed buy out the old lease in lieu. Should Almoayed agree to lease buyout or agree to lease at BD: 35 per square foot with the move in allowance and Tis justified
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