Economics of Buckhead Office Space

In March of 2013 we finalized the negotiations related to moving the QGenda headquarters to Buckhead, and now almost 3 years later we are negotiating a major expansion of 12,800 sq ft in the same class-A office building. The expansion which will give us a total of 30,000 sq ft and make us one of the largest tenants in the building. When looking at the economic terms of our lease from 2013 compared to the economic terms of our 2016 major expansion, you will see much less favorable lease terms for us that add up to over half a million in additional expense over the life of the lease.

2013 Lease Terms:

  • $22 per sq ft per year in rent.
  • First 8 months free rent inside the 5 year term.
  • $20 of tenant improvement allowance per sq ft for space buildout.
  • Allocated 5 parking spots per 1,000 ft.
  • Able to pre-negotiate an expansion into adjacent space at any time in first 2 years of 5 year term with the same economics as the main space.

2016 Lease Terms:

  • $31 per sq ft per year in rent.
  • 3.5 months free rent.
  • $15-$20 of tenant improvement allowance per sq ft for space buildout.
  • Allocated 3 parking spots per 1,000 ft.
  • Outdoor street level monument signage on the building for QGenda as one of the largest tenants.
  • Unable to pre-negotiate any expansion space, but will require a rolling first right of refusal on any future available space with more than 5,000 sq ft.

When we first negotiated our lease, the building was only 60% occupied, and today the building is over 95% occupied with only a handful of spaces available. The high demand for Buckhead office space is a clear indicator that Buckhead has become one of the most desirable locations for a company’s office space.

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