Carefirst Proposal email

11 / 32

CareFirst of Maryland, Inc.
June 30, 2015
Page 7
CareFirst will require two (2) five-year renewal options for all or a portion of the Extension Space. CareFirst
requires that the Base Renewal Rent will be established as ninety-five percent (95%) of market, taking into
account net rent, operating expenses and real estate taxes, concessions (tenant improvement allowances,
free rent, etc.), leasing commissions and any other economic factors, and that there will be no floor on the
Base Renewal Rent. Please confirm Landlord’s willingness to offer these Renewal Options.
Landlord Response: CareFirst shall have two (2) five (5) year renewal options under the same terms and
conditions and stated in the current 10800 Red Run Boulevard Lease dated September 5 th, 2007 and the
10802 Red Run Boulevard Frist Amendment dated February 26th, 2009.
11. Flexibility Rights –During the Term
Please address CareFirst’s flexibility requirements:
a. Expansion Envelope: Please describe Landlord’s ability, if any, to build adjacent structure(s) and/or
increase the leasable area of the Building or Project to accommodate CareFirst’s growth needs. At a
minimum, please identify any additional FAR allocated to the Building or Project.
Landlord Response: Merritt can pursue expansion capabilities under the following scenarios a.)
Increase rentable area of existing building with structured parking; b.) increase rentable area of
existing building with overflow-lot on parcel with-in close proximity or; c.) construct
independent building on a parcel with-in close proximity.
b. Right of First Refusal: Please confirm that throughout the Lease Term, CareFirst will have a right of
first refusal (ROFR) on any contiguous space within the Building, including any and all space relinquished
through the Pre-Commencement Date Adjustment. The terms of the ROFR will require Landlord to offer the
ROFR space to CareFirst on the same terms as those agreed to by another prospective tenant in a letter of
intent executed by that prospective tenant or otherwise bona-fide offer to lease such space to a prospective
tenant. CareFirst will have 20 days to accept such offer. If Landlord revises such terms with the other
prospective tenant subsequent to the original letter of intent, Landlord must offer the new terms to CareFirst
in accordance with the ROFR. The ROFR shall be an ongoing right throughout the Lease Term.
Landlord Response: CareFirst shall have a Right of First Offer on any adjacent space as such may
come available during the extension term, under the following terms; So long as Tenant has two
(2) years of term remaining on Lease, Landlord hereby grants Tenant a right of first offer to
lease contiguous space as the same becomes unoccupied within the building at the then
prevailing rate charged by Landlord to other tenants for comparable space within the Business
Park of which the building is a part. In the event Landlord becomes aware that such contiguous
space will become available, Landlord shall give Tenant written notice thereof which notice shall
set forth the prevailing rent and other terms under which Landlord is willing to lease the space.
In the event Tenant desires to exercise its right of first offer, Tenant shall be required to give
Landlord written notice thereof within fifteen (15) business days from the date of such notice,
and Tenant shall be required to enter into a lease for such space within thirty (30) days
following the date of such notice.
410.298.2600 / Creating Homes for Businesses Since 1967®