Lease

Bowring Building, 277–281 Water Street — 4th Floor + Underground Garage

Lease Term

5 + 5 yr

1× renewal option

Premises

1,185 sq.ft.

+ TBD underground garage

Year 1 Rent

$1,481/mo

$15/sqft + HST

Year 2–5 Rent

$1,975/mo

$20/sqft + HST

Investment at Risk

$1.04M

Tenant-funded buildout

Open Risk Flags

10

Pending negotiation

Rent Schedule

Storefront Premises — 1,185 sq.ft.

Period
Year 1
$/sq.ft./yr
$15.00
Annual
$17,775 + HST
Monthly
$1,481 + HST
Period
Year 2
$/sq.ft./yr
$20.00
Annual
$23,700 + HST
Monthly
$1,975 + HST
Period
Year 3
$/sq.ft./yr
$20.00
Annual
$23,700 + HST
Monthly
$1,975 + HST
Period
Year 4
$/sq.ft./yr
$20.00
Annual
$23,700 + HST
Monthly
$1,975 + HST
Period
Year 5
$/sq.ft./yr
$20.00
Annual
$23,700 + HST
Monthly
$1,975 + HST

Underground Garage — TBD sq.ft.

Period
Year 1
$/sq.ft./yr
$15.00
Annual
TBD
Monthly
TBD
Period
Year 2
$/sq.ft./yr
$20.00
Annual
TBD
Monthly
TBD
Period
Year 3
$/sq.ft./yr
$20.00
Annual
TBD
Monthly
TBD
Period
Year 4
$/sq.ft./yr
$20.00
Annual
TBD
Monthly
TBD
Period
Year 5
$/sq.ft./yr
$20.00
Annual
TBD
Monthly
TBD

Risk Flags

Investor-flagged clauses from the lease analysis requiring negotiation or amendment.

§2.5Unilateral Landlord Termination

Landlord may terminate at any time with 12 months' written notice and zero compensation — even immediately after a million-dollar buildout.

§3.2Underground Garage Area TBD

Garage square footage is unconfirmed. Annual and monthly rent totals cannot be calculated until this is finalized before lease execution.

§3.3Additional Rent Rates All TBD

Operating cost pass-throughs are open-ended. Historical data and/or annual caps must be obtained for accurate budgeting.

§3.7No Audit Right

Landlord's accountant determines Additional Rent and that determination is conclusive. No audit right exists in the current draft.

§4.2Double HVAC Cost Risk

SWL installs its own independent HVAC at full cost, yet still pays a Proportionate Share of the Building's HVAC under operating costs.

§4.4After-Hours Access Restricted

Common Area access is limited to Normal Business Hours (Mon–Fri). An F&B operation runs primarily evenings and weekends.

§6.4Alteration Approval + Review Costs

All renovation plans require Landlord written consent. Tenant bears cost of Landlord's architect review. Factor into buildout budget and timeline.

§6.7All Improvements Become Landlord Property

Every dollar of Tenant-funded construction becomes the Landlord's property upon installation. No compensation. Landlord can then terminate with 12 months' notice.

§8.1–8.5Assignment & Transfer Restrictions

Landlord can terminate rather than consent to a transfer. Any profit from a transfer must be surrendered. Change-of-control is broadly defined.

§12.6Relocation at Landlord Discretion

Landlord may relocate Tenant to a 'substantially similar' space. For an F&B buildout, relocation effectively means a full second construction project.

Amendment Tracker

10 proposed amendments from the negotiation brief. NON-NEGOTIABLE items are critical to SWL's ability to recoup its buildout investment.

#
1
Amendment
Early Termination Protection
Lease Section
S.2.5
Priority
NON-NEGOTIABLE
Status
Open
#
2
Amendment
Relocation Clause
Lease Section
S.12.6
Priority
NON-NEGOTIABLE
Status
Open
#
3
Amendment
Leasehold Improvements & Trade Fixtures
Lease Section
S.6.7 + Sched C
Priority
NON-NEGOTIABLE
Status
Open
#
4
Amendment
HVAC Operating Cost Exclusion
Lease Section
S.3.3, S.4.2
Priority
NON-NEGOTIABLE
Status
Open
#
5
Amendment
Assignment & Change of Control
Lease Section
S.8.1–8.5
Priority
HIGH
Status
Open
#
6
Amendment
Exclusivity (F&B)
Lease Section
New S.5.4
Priority
HIGH
Status
Open
#
7
Amendment
Additional Rent Transparency
Lease Section
S.3.3, S.3.7
Priority
HIGH
Status
Open
#
8
Amendment
Overholding & Break Fee
Lease Section
S.2.5, S.2.7
Priority
MEDIUM
Status
Open
#
9
Amendment
Building Access (24/7)
Lease Section
S.4.4
Priority
HIGH
Status
Open
#
10
Amendment
Right of First Refusal — Adjacent Unit
Lease Section
New S.12.7
Priority
HIGH
Status
Open