LEASE AGREEMENT 1701: PROPERTY MANAGEMENT AND LEASING AGREEMENT FOR HIGHRISE OFFICE TOWER $99.95

Product Overview This Management and Leasing Agreement documents the relationship between the owner of a large highrise office tower and a property management and leasing company. Number of Single Spaced Pages: 30

 

Key Features

Agreement Type	Management and Leasing Agreement
Project Type	Large Office Highrise Tower
Compensation to Manager	Management Fees plus Leasing Commissions as specified in a schedule covering computation of commissions, treatment of lease renewal options and cancellation clauses, and payments to outside brokers
Management Fees	Calculated on a percentage of Project Income
Leasing Commissions	Specified in a schedule covering computation of commissions, treatment of lease renewal options and cancellation clauses, and payments to outside brokers
Other Features	Manager prepares an annual plan for the operation of the project to be approved by the owner
Number of Single Spaced Pages	30

 

Quick Look

THIS PROPERTY MANAGEMENT AND LEASING AGREEMENT (the "Agreement") is made as of the ____ day of _____, 200__, by and between HIGHRISE OFFICE TOWER, LLC, a ____________ limited liability company (hereinafter referred to as "Owner"), and OFFICE TOWER MANAGEMENT, a ____________ limited partnership (hereinafter referred to as "Manager"), with respect to the following:

WHEREAS, Owner owns the land and improvements commonly known as the _________ Office Tower located in __________, __________, and more particularly described on Schedule 1 attached hereto (the "Project"); and

WHEREAS, Owner desires to engage Manager to manage, operate and lease the Project, and Manager desires to accept such engagement upon the terms set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and covenants contained herein, Owner and Manager hereby agree as follows:

ARTICLE I.
EXCLUSIVE AGENCY

Owner hereby appoints Manager as the sole and exclusive leasing agent, rental agent and manager of the Project and Manager hereby accepts such appointment, upon the terms set forth herein.

ARTICLE II.
TERM OF AGREEMENT

The term of this Agreement shall commence on _____________ and shall continue for a period of two (2) years thereafter ("Initial Term"). Upon the expiration of the Initial Term, this Agreement shall automatically renew on the identical terms set forth herein for successive periods of one year each. The "Term" of this Agreement shall include the Initial Term and any successive period for which this Agreement is in effect. This Agreement may be terminated prior to the expiration of the Term only upon the occurrence of one of the events set forth in Section 11.1 below.

ARTICLE III.
ANNUAL PLAN

3.1 Annual Plan. On or before November 1 of each calendar year during the Term, Manager shall prepare and submit to Owner for its approval a proposed annual plan for the promotion, operation, leasing, repair and maintenance of the Project for each calendar year (the "Proposed Annual Plan"). For purposes of this Agreement, a "Fiscal Year" shall mean a calendar year beginning on the first day of January and ending on the last day of December. The Annual Plan for the remaining portion of Fiscal Year 200__ is attached hereto as Exhibit "A".

3.2 Each Proposed Annual Plan shall include, among other matters:

(a) an "Operating Budget" which shall set forth, among other matters, anticipated cash income and expenditures and reserve additions for such Fiscal Year;

(b) a "Capital Budget" which shall set forth, among other matters, anticipated and proposed capital expenditures for such year and the source of funds in respect thereto;

(c) a "Reimbursement Schedule" of anticipated reimbursements as contemplated by this Agreement;

(d) a "Leasing Plan" which shall include, among other matters, a statement of the space that Manager projects to be leased during such year, the projected minimum rent to be obtained for such space and the other financial provisions of such projected leases (including free-rent periods, rent abatements, contributions towards taxes and expenses and escalation provisions);

(e) a "Capital Expense Timeline" setting forth anticipated estimated capital advances by Owner to Manager;

(f) a "Contingency Reserve" estimating funds necessary to cover any reasonably anticipated capital and operating expenditures in excess of the Annual Plan;

(g) an allocation of employment of personnel among Manager (either directly or through subcontracts) and Owner; and

(h) a summary of any other significant activity Manager expects to undertake during such Fiscal Year.

3.3 Approval of Proposed Annual Plan. Within in thirty (30) days of Owner's receipt of the Proposed Annual Plan, Owner shall deliver to Manager in writing its approval or disapproval of all matters contained in the Proposed Annual Plan for the succeeding year. Any disapproval by Owner of a Proposed Annual Plan shall include a reasonably detailed explanation of the reasons for such disapproval. If Owner disapproves of any Proposed Annual Plan, Manager shall submit to Owner a revised annual plan within twenty (20) days of its receipt of Owner's written disapproval. Manager shall make a good faith effort to have such revised annual plan satisfy each of the objections set forth in Owner's written disapproval. Upon written approval of a proposed or revised annual plan by Owner, such plan shall thereafter be the "Annual Plan" for the succeeding year for the purposes of this Agreement; provided, however, that if Owner and Manager cannot agree upon an Annual Plan or certain aspects thereof prior to January 1 of the succeeding year, the Annual Plan from the prior year shall govern to the extent of such disputed items (with appropriate adjustments based on increases or decreases in the yearly Consumer Price Index as published each January by the U.S. Department of Labor, Bureau of Labor Statistics and the actual amount of expenses not within the control of Owner or Manager such as real property taxes and personal property taxes). As used herein, the term "Consumer Price Index" shall mean Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average for All Items, 1982-84=100, or the successor of that Index, as published by the Bureau of Labor Statistics, U.S. Department of Labor. The parties acknowledge and agree that each Annual Plan shall provide sufficient funds for Manager to operate the Project in a manner consistent with that for the operation of similar first-class office buildings in __________, __________.

(continued)

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