Dear Property Management Team,
As our current lease agreement is set to expire in six months (July 31, 2024), I'm writing to formally initiate discussions regarding lease renewal for our office space on the 40th floor.
Current Situation:
- Current lease: 15,000 sq ft on Floor 40
- Monthly rent: HKD 450,000
- Lease expiration: July 31, 2024
Our Proposal:
We would like to renew our lease with the following terms:
1. Lease Duration: 5-year term (August 1, 2024 - July 31, 2029)
2. Space: Maintain current 15,000 sq ft
3. Rent: Request for rent freeze at current rate for first 2 years, then 3% annual increase for years 3-5
4. Tenant Improvements: Request allowance of HKD 200,000 for office upgrades
5. Early Termination: Option to terminate with 6 months notice after year 3
Rationale:
- We've been excellent tenants for 8 years with perfect payment history
- Market conditions have been challenging for professional services firms
- We're committed to long-term occupancy but need flexibility given market uncertainty
- Comparable spaces in nearby buildings are offering competitive rates
Next Steps:
We would appreciate the opportunity to meet and discuss these terms in detail. We're open to negotiation and hope to reach a mutually beneficial agreement.
Could we schedule a meeting within the next two weeks? I'm available most afternoons and can adjust my schedule to accommodate your availability.
We value our relationship with your organization and hope to continue our tenancy at Chater House for many years to come.
Best regards,
Mark Stevens
Chief Financial Officer
Kirkland & Ellis LLP