Elkridge Distribution Center
4400 Commerce Parkway, Elkridge, MD 21075
Landlord: Harbor Point Industrial VII, LLC
Commencement is the later of March 1, 2024 or Substantial Completion of the Landlord Work (Exhibit H). The Expiration Date is the last day of the 64th full calendar month after Commencement. Final dates are fixed by the Confirmation of Lease Terms Certificate (Exhibit G) — until that is signed, every date below moves with it.
Key dates
Every deadline this lease creates, in one list. The ones that come from a right are set under Your rights below, so they cannot drift apart from it. Anything else you add here is yours to change.
Your rights
Renewal option · 5 years
Exhibit IOne five-year renewal covering the entire Premises. Rent is the greater of the prior year's Base Rent or fair market value, never less than prior rent. Time is of the essence; the option is personal to Tenant and cannot be transferred to an assignee or subtenant.
5 more years, on 9 months’ notice
Rent over the term
| Lease year | Per month | For the year | Rate / SF | Change |
|---|---|---|---|---|
| Year 1Mar 1, 2024 — Feb 28, 2025 | $65,035.00 | $780,420 | $12.00/SF | — |
| Year 2Mar 1, 2025 — Feb 28, 2026 | $67,636.40 | $811,637 | $12.48/SF | +4.0% |
| Year 3Mar 1, 2026 — Feb 28, 2027NOW | $70,341.86 | $844,102 | $12.98/SF | +4.0% |
| Year 4Mar 1, 2027 — Feb 29, 2028 | $73,155.53 | $877,866 | $13.50/SF | +4.0% |
| Year 5Mar 1, 2028 — Feb 28, 2029 | $76,081.75 | $912,981 | $14.04/SF | +4.0% |
| Year 6Mar 1, 2029 — Jun 30, 2029 | $79,125.02 | $316,500 | $14.60/SF | — |
As the lease words it
| Period | Per month | Rate / SF | Note |
|---|---|---|---|
| Mar 1, 2024 — Feb 28, 2025 | $65,035.00 | $12.00/SF | Months 1–12. First 4 months abated. |
| Mar 1, 2025 — Feb 28, 2026 | $67,636.40 | $12.48/SF | Months 13–24 |
| Mar 1, 2026 — Feb 28, 2027NOW | $70,341.86 | $12.98/SF | Months 25–36 |
| Mar 1, 2027 — Feb 29, 2028 | $73,155.53 | $13.50/SF | Months 37–48 |
| Mar 1, 2028 — Feb 28, 2029 | $76,081.75 | $14.04/SF | Months 49–60 |
| Mar 1, 2029 — Jun 30, 2029 | $79,125.02 | $14.60/SF | Months 61–64 |
Deal points
Things due every year
Obligations that repeat for the life of the lease. Missing one is a technical default, which is exactly what kills an option later.
Deliver renewed insurance certificates
ACORD 28 and 25-S certificates are due at least 10 days before any coverage expires. Landlord, Landlord's Mortgagee and any designated party must be named as additional insureds. Carriers rated A VIII or better.
Deliver HVAC preventive maintenance contract
A quarterly-service PM contract (scope per Exhibit E) must be in place and a copy delivered to Landlord at the commencement of each Lease Year, and on demand.
Deliver dock equipment maintenance contract
A PM contract covering all dock equipment exclusively serving the Premises, delivered at the start of each Lease Year.
Expense reconciliation clocks
The fine print, in English
Every clause that changes what you owe or what you can do, tagged by whether it helps you or costs you.
Four months abated, and a clawback if you default
Base Rent (but not Additional Rent) is abated for the first four full calendar months — $260,140.00 in total. If the Lease or your right to possess is terminated for a Tenant default, the abatement is void and the entire abated amount becomes immediately due. Landlord's management fee is not reduced on account of the abatement. Base Rent and Estimated Expenses for the fifth full month were paid at execution, so the first out-of-pocket payment falls in month six.
Triple net, no base year, two different shares
You pay monthly Estimated Expenses equal to 1/12 of your share of Taxes and Operating Expenses — initially $9,809.45/month. Your share is 47.00% of the Building, but expenses shared across the two-building Project are allocated at 32.43%. Landlord reconciles annually, grosses up occupancy-variable expenses as if the Building were full, and may not collect more than 100% of Operating Expenses.
30 days to ask for backup, 90 days to object
You may request the supporting data within 30 days of a Reconciliation Statement, and you are deemed to have waived any objection not raised within 90 days. Both clocks start when the statement lands, and both are easy to sleep through.
TI allowance capped, 4% construction management fee
The allowance is the lesser of actual Tenant Improvement Cost or $245,000.00. Landlord charges a construction management fee of 4% of hard costs, and any excess over the allowance is payable in advance within five business days of billing. Landlord bids to at least three contractors; you get a one-time value-engineering right after bid selection.
You maintain almost everything inside
You contract and pay for all utilities, and maintain the Premises including systems exclusively serving it, all dock equipment, fire suppression, security, janitorial, trash, interior pest control and interior window cleaning. Landlord keeps footings, foundations, structural steel and structural roof and exterior walls at its own cost. If an HVAC system needs replacing, Landlord pays up front and you repay the amortized amount over the remaining Term at 12% per annum.
Consent required, and Landlord takes half the upside
Landlord's prior written consent is required, not to be unreasonably withheld. Affiliate transfers are permitted without consent if the Affiliate's tangible net worth is at least equal to yours at lease date. You pay a $2,500 administrative fee plus Landlord's costs up to $5,000 per transfer. Landlord may recapture on an assignment, or on a sublease of more than 50% of the Premises for more than 50% of the remaining Term — and receives 50% of net transfer profit. No transfer relieves you of any obligation.
$15,000 threshold before consent is needed
Consent is required except for work under $15,000 in aggregate per project that is not visible from the exterior, does not affect any system or structural component, and requires no penetrations into the floor, ceiling or walls. Ten days' prior notice with plans, permits and contractor insurance; as-built plans, lien waivers and warranties on completion. Landlord may require security for work over $50,000.
Eight dock-high doors, unreserved car parking
Car parking is your share of spaces, first come first served, unreserved and non-exclusive. You may store overnight one operative tractor/trailer or truck per dock-high position exclusively serving the Premises. Nothing may remain in the Common Areas longer than 72 hours.
150% for month one, 200% after — and immediate default
Holding over creates a tenancy at sufferance for the entire Premises at 150% of the Rent in effect immediately prior for the first holdover month, and 200% thereafter. Any holdover is an immediate Event of Default with no notice and no cure period, and you indemnify Landlord for resulting losses.
$88,934.47, returned within 60 days — if you ask
Held without interest and not as advance rent. If drawn, you must restore it within five days of demand. Returned within 60 days after the Expiration Date, subject to your performance. There is no burndown in this lease — the full amount sits with the landlord for the whole term.
Move-out conditions are itemized and expensive
Exhibit F requires: truck doors, dock levelers and pedestrian doors serviced; HVAC in good working order and inspected by a certified mechanical contractor; floor striping and markings removed; signage removed and wall surfaces restored; warehouse broom-clean with all racking removed; all keys and passcodes delivered. Start scheduling this six months out.
Bridging lease at the prior facility
By First Amendment, the tenant's existing lease at its prior 15,896 RSF facility was extended from March 1, 2024 at $11,218.12 per month, expiring the later of March 5, 2024 or five days after Commencement here — bridging occupancy until this Premises is delivered. That amendment deleted the prior renewal option and was accepted as-is.