Lease Offer Comparison — Eley Corporation

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

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 and 100 Spontex totals from formal proposals. North River and 981 IPR estimated from chart data pending formal proposals.
† 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.