SUBJECT:
Title
Request Approval of the Lease Renewal Agreement between 15912 STATE ROAD 40, LLC, and Marion County for the Tax Collector office space located at 15956 East State Road 40, Silver Springs, Florida 34488 (“Forest office”)
Body
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INITIATOR: |
DEPARTMENT: |
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Matthew G. Minter, County Attorney |
County Attorney |
DESCRIPTION/BACKGROUND:
The Marion County Tax Collector, George Albright, requests that Marion County enter into a Lease Renewal agreement with 15912 State Road 40, LLC, for a term of five (5) years commencing February 1, 2025. The Marion County Tax Collector has re-negotiated the terms of the renewal so that the current rental rate of $1,286.50 per month (which is $15,438.00 per annum), shall remain the same through the entire term of the Lease.
The current rental rate of $1,053.55 per month, which includes CAM (Common Area Maintenance) and tenant’s share of operating expenses, will increase to $1,286.50 per month including CAM and tenant’s share of operating expenses. The base rent and CAM would remain the same for all 5 years. This increase results in a total expenditure increase of $2,795.40 for each of the five (5) years.
Currently, the base rent is $6.67/sf and CAM is $2.70/sf - which equates to $9.37/sf. The requested base rent is $7.56/sf with CAM at $3.88/sf - which equates to $11.44/sf.
Most commercial leases provide for an annual increase in base rent of 2-3% and CAM fluctuates from year to year (rarely downward). The proposed lease renewal fixes the base rent and the CAM during its 5-year rental term.
A review of office/retail rents in similar properties in Marion County reveals that the requested increase remains lower than the rental market rates, which are $15-17/sf. Additionally, this is the only shopping center located in the area and the Tax Collector’s branch office serves a large portion of Northeast Marion County from this location.
BUDGET/IMPACT:
May result in increase of the Tax Collector’s budget in coming fiscal years
RECOMMENDED ACTION:
Recommended action
Motion to approve the Lease Renewal Agreement between 15912 State Road 40, LLC and Marion County for the Tax Collector office space located at 15956 East State Road 40, Silver Springs, Florida 34488 (“Forest office”).
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