ANALYSIS:
The criteria established by the Administration for the required office space included the following: 1) appropriate size between 4,500 and 5,500 square feet, 2) an existing buildout which meets the needs of the Code Compliance Department and would enable a quick occupancy, 3) adequate parking and 4) fair market terms & conditions.
Subsequently, the Real Estate Division identified space and negotiated terms and conditions for a lease at 1680 Meridian Avenue. Prior to execution, the fully negotiated lease agreement shall be subject to Legal review and approval. A summary of the proposed lease terms are as follows:
TENANT: City of Miami Beach
LANDLORD:1680 Costa, LLC
PREMISES: 1680 Meridian Avenue, Suite 203 & 602, Miami Beach, Florida 33139
SIZE: Approximately 4,814 rentable square feet (approximately 2,583 rentable square feet in Suite 203 and 2,231 rentable square feet in Suite 602)
TERM: Sixty-three (63) months
RENT ABATEMENT: Three (3) months
LEASE COMMENCEMENT DATE: April 1, 2019
LEASE EXPIRATION DATE: June 30, 2024
RENEWAL OPTIONS: Tenant shall have two (2) renewal options for three (3) years each, at the Tenant’s option, at fair market rent.
INITIAL BASE RENT: $44.00 per rentable square foot (estimated to be $211,772 annually; $17,648 monthly)
BASE RENT INCREASES: Three percent (3%) annually
OPERATING EXPENSES: In addition to Base Rent, Tenant shall pay its pro rata share of maintenance, insurance and real estate taxes in excess of a 2019 base year, which is estimated at $15.21 per square foot. Increases in controllable Operating Expenses shall be capped at no more than five percent (5%) above the previous year. Landlord shall provide building janitorial service five (5) days per week, electricity, and water. Landlord shall provide air conditioning during Code’s current hours of operation (approximately 20.7 hours/day).
TENANT IMPROVEMENTS: Landlord will provide an allowance of $10.00 per rentable square foot ($48,140) to be used towards improvements to the Premises. Any unused allowance shall be applied towards rent.
SECURITY DEPOSIT: None
USE: Administrative offices