Lease Offer Comparison — Eley Corporation

Five candidate properties · As of August 2026 · NNN lease structure

Eley Corporation — Proposed Adjustments to All Proposals

Self-Fund All TI
Eley will pay all tenant improvement costs directly. Landlord manages and bills; no TI allowance rolled into the lease. In exchange, Eley requests a reduced base rate reflecting the landlord’s eliminated upfront capital exposure.
Eliminate Free Rent
Eley proposes removing all rent abatement periods. Free rent adds accounting complexity with minimal practical benefit. Eliminating it simplifies the deal and provides the landlord a cleaner income stream from day one.
No Demising Wall Required
Eley will operate without a demising wall until a neighboring tenant occupies adjacent space and requires one. This eliminates a significant upfront construction cost and timeline risk for both parties.

Key Lease Terms

Annual NNN Rent by Year (Base Rent Only, excl. OPEX)

Dashed lines = TBD (no formal proposal received). Solid lines = confirmed proposals. Does not include estimated OPEX/NNN pass-throughs.

Estimated Total Occupancy Cost Over Full Term (NNN + OPEX, excl. TI)

* Cherokee Gateway, 100 Spontex, 981 IPR, and North River totals from formal proposals. Riverport Rd estimated pending proposal.
† OPEX held flat at Year 1 estimate for modeling purposes. Actual NNN pass-throughs will vary.

Landlord Economics — Reverse-Engineered (Active Proposals)

100 Spontex Dr
Columbia, TN  ·  Jamie Brandenburg
Landlord Upfront Investment
TI Allowance$450,000
Broker commission (est. $3/SF)$137,475
Legal fees (est.)$15,000
Free rent cost (3 months)$129,247
Total Landlord Out$731,722
Landlord Return
Gross rent collected (123 mo)$5,791,730
NPV at 7%$4,022,287
Implied ROI on investment449.7%
If Eley Self-Funds TI
TI recovery embedded in rate$1.35/SF/yr
Justified rate floor$9.60/SF
Realistic ask~$9.50–$9.75/SF
No termination clause in current offer⚠ None
Self-funding TI removes landlord’s stated objection to adding early termination.
Eley Occupancy Cost (NPV, rent + OPEX)
Current proposal NPV$4,440,449
Per occupied SF$96.90/SF
4550 Cherokee Gateway
Cleveland, TN  ·  Sim Wilson
Landlord Upfront Investment
TI Allowance$500,000
Broker commission (est. $3/SF)$150,000
Legal fees (est.)$15,000
Free rent cost (7.5 months)$304,688
Total Landlord Out$969,688
Landlord Return
Gross rent collected (120 mo)$5,283,954
NPV at 7%$3,646,438
Implied ROI on investment276.0%
If Eley Self-Funds TI
TI recovery embedded in rate$1.39/SF/yr
Justified rate floor$8.36/SF
Realistic ask~$8.50–$8.75/SF
Termination Penalty (7% amortized)
Current (landlord-funded TI), mo. 84$240,662
If Eley self-funds TI, mo. 84$52,645
Penalty reduction at mo. 84$188,017
Penalty drops 78% if Eley funds TI. Leasing cost estimates needed to confirm exact figure.
Eley Occupancy Cost (NPV, rent + OPEX)
Current proposal NPV$4,084,247
Per occupied SF$81.68/SF
NPV Cost Advantage
Cherokee saves $356,202
vs. Spontex at current proposals
Per-SF Cost (NPV)
Spontex $96.90  ·  Cherokee $81.68
Cherokee is 16% cheaper per occupied SF
Landlord ROI
Spontex 450%  ·  Cherokee 276%
Jamie has more room to negotiate
Broker commission and legal fees are estimated at $3/SF and $15,000 respectively — request actual figures from each landlord. Cherokee annual escalation assumed 3% (not stated in proposal). NPV calculated at 7% discount rate. All figures exclude OPEX pass-throughs except where noted.

Tenant Improvement — Questions to Ask

Scope & Budget
  • Is the allowance based on final approved plans, or a rough estimate — has anyone verified it covers your actual buildout scope?
  • Is there a contingency line in the budget, and how are savings or overages handled?
Reimbursement Process
  • How does reimbursement work — do you pay contractors first and submit invoices, or does the landlord pay directly? What documentation is required (invoices, lien waivers)?
  • How quickly does the landlord pay after invoices are submitted? (Slow reimbursement affects your cash flow during construction.)
  • Is there a deadline to use the allowance (e.g., within 6–12 months of lease commencement)? What happens to unused funds — can they be applied to rent, or are they forfeited?
Cost & Rate Impact
  • What would the base rent be with $0 TI vs. the proposed TI? This reveals the implied cost of capital — you can compare it to financing improvements yourself.
  • Is the TI allowance amortized into the rent at a stated interest rate? If so, what rate?
Over-Allowance
  • If buildout costs exceed the allowance, who pays the overage? Is the lease explicit about this?
  • Can excess costs be amortized into rent as an "over-allowance loan"? If so, at what interest rate and repayment schedule — and is this documented in the lease?
Approval & Control
  • Who has approval rights over contractors and plans? Landlord approval delays can blow your timeline and budget — what are the response timeframes?
  • If the landlord is running the buildout (as with Cherokee Gateway), what visibility and approval rights do you have over scope changes, substitutions, and cost overruns?
Early Termination
  • If you exercise an early termination option, what portion of the TI allowance must be repaid? How is the unamortized balance calculated, and at what interest rate?
These are general questions — lease terms vary significantly by market and landlord. Have your broker or attorney model the rent-vs-TI tradeoff on each specific proposal before signing.