Our current deal is similar to Shelly's. When we moved last year, we signed a 5 year (with 2.5% annual increases) with a 3 year renewal option, with rates locked in. I know that since we signed, new leases in the same building have increased by 20-25%. Whew.
We just signed a lease amendment to grow by ~50%, and in order to make the TI budget work we decided to extend the base lease to 10 years. That structure is a *little* more complex just to make the numbers work...but after my crash course in "grown up" leases last year I felt a lot better navigating the extension. For me, it's all about what the long term deal (10 years+) enables that a shorter lease doesn't. Prior to this deal, there wasn't really an incentive to sign longer *except* protecting the space we're in, and for me that's not enough. -Alex ------------------ *The #1 mistake in community building is doing it by yourself.* Better Coworkers: http://indyhall.org Weekly Coworking Tips: http://coworkingweekly.com My Audiobook: https://theindyhallway.com/ten On Thu, May 11, 2017 at 12:04 PM, Jerome Chang <[email protected]> wrote: > Wow, sounds like a great deal. In LA, typically a renewal option rate is > set to 5% below the new market rate. Did you lock in based on your current > rate? > > > *JEROME CHANG* > > talk to us: (323) 330-9505 > chat w/ us: http://www.BLANKSPACES.com/chat <https://lc.chat/now/7173741/> > > *WEST: Santa Monica* | 1450 2nd St (@Broadway) > *CENTRAL: Mid-Wilshire* | 5405 Wilshire Blvd (2 blocks west of La Brea) > *EAST: Downtown* | 529 S. Broadway, Ste 4000 (@Pershing Square) > > On May 11, 2017, at 8:51 AM, Shelley Delayne <[email protected]> > wrote: > > We opted for a middle-ground lease: 5 year initial lease, with (2) 5 year > renewal options with fixed/pre-negotiated rent increases for each. So, a > total of 15 years that I know what our rent would be in the space where we > are. It gave our landlord some assurance that we're in it for a reasonable > length of time, without totally locking me in for fifteen years from day > one. > > > :) > Shelley > > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
