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Summary
This commercial lease agreement is between Bredford Family & Friends (Landlord) and Plant and Flowers Logistics (Tenant) for a 5,000 square foot warehouse space located at 19141 Pine Ridge Circle, Anchorage, AR. The lease term is 3 years, from March 1, 2018 to March 31, 2021, with an option to renew for two additional 2-year terms. The base rent is $5,000 per quarter plus estimated operating costs of $500 per month. Tenant will use the premises for storage, order processing, distribution, and maintenance of wholesale plants, flowers, and horticultural products.
Key Data Fields
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Potential risks
A potential risk is the environmental restrictions prohibiting storage or use of hazardous materials, which could impact Tenant's operations if they use any chemicals/pesticides. Another risk is Tenant's inability to assign or sublet the premises, limiting flexibility. The lack of storage facilities included is also a potential risk if additional space is needed. Finally, Tenant has limited parking spaces which may be insufficient for their needs.
Important dates in the contract
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Negotiation areas
Tenant could try to negotiate more parking spaces or a lower parking fee given the $1,000 monthly charge. They could also request inclusion of some storage space or the ability to install storage facilities. Allowing reasonable subletting rights could provide more flexibility. Finally, Tenant may want to clarify allowances around chemicals/pesticides for their horticultural products to ensure compliance with environmental restrictions.
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