<format type="json">{lease_id: string, parties: {lessor_details: {name: string, entity_type: string, address: string optional}, lessee_details: {name: string, entity_type: string, address: string optional}}, property_details: {address: string, property_type: string, square_footage_sqft: number optional, lease_area_description: string}, lease_terms: {effective_date: date, commencement_date: date, initial_term_months: number, option_to_renew: list[{option_number: number, duration_months: number, notice_period_days: number optional, renewal_rate_adjustment: string}], termination_clauses: list[{clause_type: string, notice_period_days: number, penalty_details: string}] optional, requires_landlord_consent_for_sublease: boolean}, financial_terms: {base_rent_details: {initial_monthly_rent_usd: number, annual_escalation_rate_percent: number, escalation_frequency: string}, additional_rent_components: list[{component_name: string, basis: string, estimated_monthly_amount_usd: number optional}], security_deposit_usd: number, late_payment_interest_rate_percent: number optional}, insurance_requirements: list[{coverage_type: string, minimum_coverage_amount_usd: number, named_insureds_required: list[string]}] optional, permitted_use: string, governing_law_state: string, document_status: string}</format> <data>INTERNAL MEMORANDUM - LEASE ABSTRACT

Reference ID: LSE-COM-2024-3222
Status: Executed
Governing Jurisdiction: Nevada

This abstract summarizes the key terms of the fully executed lease agreement between the Landlord, Smith Ltd Inc., and the Tenant, Peters, Hernandez and Collins. The team is preparing for the quarterly portfolio review next month, so please ensure all financial models are updated with this data. The lease agreement was made effective as of 2024-05-09.

The subject of this lease concerns the Partial suite 50A in Building 2 at the property located at 213 Oliver Terrace Apt. 160
Hudsonshire, AL 31822. This Industrial facility consists of the specified area and is designated for the purpose of Professional services and ancillary administrative functions..

The lease commencement is scheduled for 2024-05-25, establishing an initial term of 7 years. The Tenant's monthly obligation for base rent begins at $118,255.10. This figure is scheduled for an annual increase based on a 1.78% escalation rate. A security deposit of $118,255.10 has been furnished by the Tenant.

The Tenant holds an option to extend the lease for an additional 24 months with 270 days' prior notice. During any such renewal, the rent will be adjusted according to Fixed 3% annual increase. Any potential sublease of the premises requires Landlord's explicit consent.

Per section 10.1, Peters, Hernandez and Collins is required to maintain, at minimum, a Commercial General Liability policy of $2,000,000. The certificate of insurance must name all parties as stipulated, including Smith Ltd Inc.. Late payments of rent will accrue interest at a rate of 10.1% per annum. Note the existence of a Co-tenancy Failure clause, which can be triggered with 90 days' notice and involves a penalty structured as 11 months' rent plus unamortized transaction costs.

Additional rent provisions for pass-throughs like Operating Expenses and Property Taxes are based on the tenant's pro rata share. Further details can be found in the full agreement document stored in the central repository. Please complete your review by end of week.</data>
{
  "lease_id": "LSE-COM-2024-3222",
  "parties": {
    "lessor_details": {
      "name": "Smith Ltd Inc.",
      "entity_type": "Corporation",
      "address": "984 Turner Corner\nEast Andrew, NV 25756"
    },
    "lessee_details": {
      "name": "Peters, Hernandez and Collins",
      "entity_type": "S-Corp"
    }
  },
  "property_details": {
    "address": "213 Oliver Terrace Apt. 160\nHudsonshire, AL 31822",
    "property_type": "Industrial",
    "lease_area_description": "Partial suite 50A in Building 2"
  },
  "lease_terms": {
    "effective_date": "2024-05-09",
    "commencement_date": "2024-05-25",
    "initial_term_months": 84,
    "option_to_renew": [
      {
        "option_number": 1,
        "duration_months": 24,
        "renewal_rate_adjustment": "Fixed 3% annual increase",
        "notice_period_days": 270
      }
    ],
    "requires_landlord_consent_for_sublease": true,
    "termination_clauses": [
      {
        "clause_type": "Co-tenancy Failure",
        "notice_period_days": 90,
        "penalty_details": "11 months' rent plus unamortized transaction costs."
      }
    ]
  },
  "financial_terms": {
    "base_rent_details": {
      "initial_monthly_rent_usd": 118255.1,
      "annual_escalation_rate_percent": 1.78,
      "escalation_frequency": "Annually"
    },
    "additional_rent_components": [
      {
        "component_name": "Operating Expenses (CAM)",
        "basis": "Pro Rata Share (8.40%)"
      },
      {
        "component_name": "Property Taxes",
        "basis": "Pro Rata Share (12.56%)"
      },
      {
        "component_name": "HVAC Maintenance Contract",
        "basis": "Fixed Annual Fee"
      }
    ],
    "security_deposit_usd": 118255.1,
    "late_payment_interest_rate_percent": 10.1
  },
  "permitted_use": "Professional services and ancillary administrative functions.",
  "governing_law_state": "Nevada",
  "document_status": "Executed",
  "insurance_requirements": [
    {
      "coverage_type": "Commercial General Liability",
      "minimum_coverage_amount_usd": 2000000,
      "named_insureds_required": [
        "Smith Ltd Inc."
      ]
    },
    {
      "coverage_type": "Property (All Risk/Special Form)",
      "minimum_coverage_amount_usd": 5000000,
      "named_insureds_required": [
        "Smith Ltd Inc.",
        "Alvarado Ltd Mortgage Corp."
      ]
    }
  ]
}