In this project, you are required to negotiate, draft, and prepare an offer to lease office space

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Question:

In this project, you are required to negotiate, draft, and prepare an offer to lease office space for the finalisation of the lease by the lessor's solicitor (commercial leases are not prepared by agents).

Question 1:

A lessor has appointed you to lease the office space below:
Lessor Name + Address: Jon Marshall, 236 Nightingale Ave, South Side, SA 5888
Property Address: Unit 5, 128 Fullarton Road, Norwood, SA 5065
Term: 1 x 5-year lease with negotiable rights of renewal
Escalation of rent: 3% per annum
Rent: $90,000 per annum, including outgoings excluding electricity
Lettable space: 150m2
Deposit: 3 month's rent
Permitted Use: Office
All the other terms are included in the Offer to Lease document as per your agency's requirements.

(a) You have been approached by Mary Bing, who is interested in securing the premises.

Mary has the following concerns;

Is the lessor prepared to negotiate a lower rent?

Is the Lessor prepared to accept a shorter term with multiple renewals?

Draft an email to Mary briefing her on the lease terms and conditions and providing the required information or advice to address her issues and concerns.

(b) Scenario:

Mary wants to move ahead with leasing the premises and has made the following offer:
Proposed Lessee Name + Address: Mary Bing, 163 Atlas St, North Side, SA 5999
Rent: $65,000 per annum, including outgoings excluding electricity
Term: 3 x 2 years
Escalation of rent: 2% per annum
Deposit: 3 month's rent
Proposed use: Office
Lease Commencement date: 01/02/2020

Identify the differences between the Lessor's instructions (see question 1) and Mary's initial offer.

(C) As part of the negotiation process, you must draft an email to your client (the lessor) explaining the offer you have received from Mary and any negotiation recommendations you have.

(D)The lessor has written back to you and has agreed to the following:
Term: agreed to 3 x 2 years
Escalation of rent: 2.5% per annum
Rent: $75,000 per annum, including outgoings excluding electricity
The lessor is not interested in further negotiating the terms and conditions of the lease.

Draft an email to Mary explaining the offer you have received from the lessor and confirm with Mary the required bond, rent reviews, outgoings and financial obligations.

Your email must be convincing in trying to negotiate the lessor's final position.

(E) You are now required to send the signed "Offer to Lease" to the Lessor's Law Firm (Crowe and Crowe Solicitors) for them to draw up a lease.

Draft a professional email to the solicitors instructing them to prepare the lease.