Lease Proposal
The current lease proposal outlines the offer to rent 200 square feet of warehouse space, including the terms, conditions, and estimated costs. I am interested in leasing the property for an 8-year period, renovating it, and utilizing it as an event venue.
Terms and Conditions
Within this proposal, I offer to lease the warehouse space you own for the period of 8 years. The property is ideal for my commercial project, which involves utilizing it as an event hall. However, since the space itself requires extensive work and renovation before it can be used as such, I offer the following agreement. I will conduct the conversion on the terms of subtracting the remodeling costs from the rent. You can find the estimated costs of the renovation further in this document.
Once the space is converted to an event hall and can be utilized as such, I will start paying rent on a monthly basis. The space will be used to host small events and gatherings. It will be properly maintained and cleaned after each meeting, ensuring that no damage is caused to the property. The precise rental numbers will be discussed once the owner agrees to the proposal.
I offer a 6% annual rent increase on the lease. Since the newly renovated property is intended for commercial use, I will require you to permit the use of signs related to the business’s needs. The owner will not be entitled to the percentage of profit shares from the business project but will receive monthly rent payments. Since the current space is in poor condition and empty, no deposit will be required; instead, the tenant will renovate the property, with the costs deducted from the first month’s rent. By the end of the 8-year lease period, the owner will be allowed to retain the furniture purchased for conversion.
Estimated Costs of Renovation
The following section of the paper will describe the detailed calculation of the renovation costs for transforming a 200-square-foot warehouse into an event hall. According to Fixr (2021), remodeling walls may cost $3 per square foot, installing lighting – $250, ceiling – $300, floor – $600, and door – $400. Additionally, chairs are approximately $12 per person, and a whiteboard can range from $60 to $90. Moreover, the average expenses for an electrician are $40 per hour, for a painter – $50 per hour, and for a flooring installer – $7 per square foot (Fixr, 2021).
A 200 square foot space in need of wall renovation will cost $600 in paint and $50 for an hour of work. The ceiling and lighting will cost an estimated $590 for installation, materials, and an electrician’s time. Covering the floor material and installation will cost about 2,000$. Since a person typically occupies approximately 7 square feet of space, the room can accommodate 24 people with some free space; therefore, $288 will be spent on chairs. With the door installation and whiteboard purchase totaling $470, the total cost of the conversion will be $4,000.
Reference
Fixr. (2021) How much does it cost to remodel a living room. Web.