Rocket Mortgage leased more space at 611 Woodward Avenue in Detroit in August 2022. The amendment gives it five reserved spaces in the garage on floor LL1, numbered 8 through 12, and prices them like this:
“Parking charges for the Qube Parking Spaces shall initially be Three Hundred and 00/100 Dollars ($300.00) per parking space per month, which monthly parking fee shall increase by an amount equal to Five and 00/100 Dollars ($5.00) per parking space on January 1st of every year."[1]
CarGurus signed a fifteen year lease for 273,595 square feet at 1001 Boylston Street in Boston in December 2019. It gets one space per 3,000 square feet, which the lease works out to 91 cars, and it prices them like this:
“fees for such parking privileges at the monthly rates from time to time charged by the applicable Parking Facility Manager, which as of the Effective Date is $490.00 per month per car (the ’ Monthly Parking Charge ‘)."[2]
Four sentences later the same section promises no increase for two years, then annual increases to prevailing market rates, capped at five percent of the prior year, on three months’ notice.
Both clauses are about a parking space. One of them is arithmetic you can run on the day you sign. The other is a market reset with a collar, and the collar is the only reason the number is knowable at all.
What the escalator does over a full term#
Rocket’s five spaces start at $1,500 a month and go up $60 a year, every year, for as long as the amendment runs. Nothing in the sentence is contingent. A tenant can put the number in a model for 2035 and be right.
CarGurus’ 91 spaces start at $44,590 a month. Hold the rate flat for the first two years, then raise it by the full five percent every year, which is what a landlord with a garage in the Back Bay will do, and the rate reaches about $924 per space per month in rent year fifteen. Monthly parking in the last year of the term is about $84,100. Over the fifteen years the parking charges total roughly $11.0 million.
The lease’s first year base rent is $17,769,995.25. Parking is about three percent of that, which is the number that gets it waved through. Eleven million dollars is the number that should have been in the model, and it only appears if someone compounds the cap.
The cap is the tenant’s win here, and it is worth saying why. Without clause (iii), the sentence that governs is “the monthly rates from time to time charged by the applicable Parking Facility Manager.” That is the same structure as a landlord reselling you electricity at its own posted factor, which the rent inclusion post took apart: the price is whatever the party charging it says it is, and the tenant’s protection is a number in the document or nothing.
Then prevailing, published rates, subject to increase#
Three other filed documents show what the sentence looks like without a collar.
Sage Therapeutics took nineteen more spaces at 245 First Street in Cambridge in April 2018, at a ratio of 0.9 spaces per 1,000 rentable square feet of the additional premises:
“Tenant’s use of the additional parking spaces shall be on a first come, first served basis at the then prevailing monthly parking rate, as adjusted from time to time in accordance with the published rates applicable to the Building. As of the Execution Date of this Amendment, the current monthly rate is $300.00 per unreserved parking space per month."[3]
There is no cap, no notice period, and no definition of what makes a rate the published rate. The $300 is stated as a fact about the execution date, not as a promise about anything after it.
Alnylam’s first amendment at 101 Main Street, in the same submarket, is blunter about it. Its thirty passes carry a “prevailing monthly parking charge” that “is currently $350 per parking pass per month … which prevailing monthly parking charge is subject to increase from time to time as set forth in the Lease.” Avanir’s 2013 Aliso Viejo amendment is the compact version: eight labeled reserved spaces “at the prevailing rate for such spaces (as of the date hereof, the monthly rate is $60.00 per space).”
Lay the four current rates side by side and the spread is the whole point: $60.00 in suburban Orange County, $300.00 in Kendall Square and Detroit, $350.00 at Riverfront Office Park, $490.00 in the Back Bay. A clause that says “prevailing rate” in a market moving from the bottom of that range to the top is not a price. It is an agreement to find out later.
A ratio is arithmetic, and the arithmetic reproduces#
PROS leased 117,555 square feet at The Kirby Collection in Houston in November 2018. Exhibit “G” to the lease is a seven page Parking Agreement, which is where parking belongs and where almost nobody looks. It starts with a count:
“Throughout the Term, Tenant shall have the right during Building Hours to use up to 436 parking spaces, which shall consist of up to 436 covered unreserved parking spaces (’ Unreserved Parking Spaces ‘) in the Parking Garage, out of which Tenant may designate up to 31 as reserved parking spaces”[4]
Then it shows its work. The unreserved number comes from 3.75 spaces per 1,000 square feet on the first 100,000 square feet and 3.5 per 1,000 above that. Run it: 375 plus 61.4 is 436.4, rounded down to 436. The reserved number comes from 0.25 per 1,000 on the first 100,000 and 0.35 above it. Run it: 25 plus 6.1 is 31.1, rounded down to 31. Both printed numbers reproduce exactly from the printed ratios.
That is worth doing on every parking exhibit you read, because the two numbers are set by different documents at different times, and the lease you are handed is often the fourth version. Rocket’s amendment is the case where they come apart on purpose. The six spaces per 1,000 square feet in its original lease “does not apply to the Third Amendment Expansion Space. Such ratio also does not apply to the Fourth Amendment Expansion Space.” New space gets two per 1,000 instead of six. On 407,050 square feet of existing premises the old ratio supports about 2,442 spaces, and the expansion comes in at a third of that rate without the body of the lease changing a word.
The other reason to check the arithmetic is that the multiplier is rentable area, and rentable area is not a fact. It is a measurement the landlord takes and can take again, which is what the remeasurement post was about. CarGurus’ clause follows the number wherever it goes in both directions: “In the event that the Rentable Floor Area of the Premises increases or decreases at any time during the Lease Term, the number of parking privileges provided to Tenant shall be increased or reduced proportionately.”
Who else the landlord may promise the garage to#
A ratio is a promise about your space count. It says nothing about how many cars will be looking for a stall at 8:45 on a Tuesday. Of the six documents, exactly one addresses that, and it is PROS again:
“From and after the date hereof, Landlord shall not contractually provide the other office tenants in the Building with a collective average parking ratio greater than 3.5 parking spaces per 1,000 Net Rentable Area within such tenant’s space.”
That sentence binds the landlord’s future leasing, not its operations, which is why it can be written as an absolute rather than a commercially reasonable efforts clause. The sentence before it does the operational half on efforts: the landlord “will use commercially reasonable efforts not to oversell the office usage in the Parking Garage.” Then there is a notice and cure procedure with a defined trigger, an “Oversell Event,” forty eight hours to fix it, and abatement of parking rent if five Oversell Events land in seven consecutive business days and the landlord cannot keep the garage clean for twenty consecutive business days afterward.
The same agreement runs the meter in the other direction. If PROS’ own employees average more than 458 cars, the landlord may “force Tenant, at Tenant’s sole cost and expense (in addition to the unreserved parking rate), to immediately commence using Landlord’s valet service company,” stacking roughly 111 cars on the fourth floor. Both sides are measured. That is rare, and it is what makes the clause enforceable rather than decorative.
Is a parking charge rent?#
Ask a tenant whether the parking charge is additional rent and most will say yes. None of these six documents says so in those words. They get there, or not, three different ways.
PROS gets there by definition. Section 2.2(a) says “Base Rental and all other sums due from Tenant hereunder shall be collectively referred to as ‘Rent,’” and Parking Rent is a sum due under the lease, so a missed parking invoice is a rent default with the full remedy ladder behind it.
CarGurus gets there by remedy instead, and it is the sharper drafting, because the money goes to a third party: “Tenant’s failure to make payment when due to the applicable Parking Facility Manager shall be considered to be a failure in the payment of rent hereunder for which Landlord shall have all its rights and remedies under this Lease and at law and in equity.” The tenant owes the garage operator, and defaulting to the operator defaults the lease.
Capricor gets there by not charging anything at all, which takes the question off the table.
The distinction matters in one direction only. If the charge is rent, late payment is a default and the landlord’s remedies are the lease’s remedies. If it is a license fee under a separate agreement, nonpayment is a breach of that agreement. CarGurus’ lease says what its parking privileges are, in the same breath: “Tenant further acknowledges and agrees that a license only is hereby granted, and no bailment is intended or shall be created.” A license you can lose, priced as rent you cannot stop paying, is the shape of most parking clauses.
Who polices a reserved space#
Rocket’s five Qube spaces are numbered on an exhibit. The next sentence is the whole clause:
“However, Landlord shall not be required to police Tenant’s right to utilize such parking spaces.”
CarGurus’ three reserved spaces are shown on an exhibit too, and the lease says the opposite:
“Landlord agrees to post one or more signs in front of such reserved parking spaces indicating that the same are ‘reserved for CarGurus.’ Landlord shall cause the Reserved Parking Spaces to be monitored for violations of such signs.”
Same question, two answers, and the answer is one sentence long in both. A reserved space nobody enforces is an unreserved space with a sign on it, sold at the reserved rate. PROS’ spread is $78.10 against $41.65, so in that building the premium for a designation is eighty seven percent.
Capricor Therapeutics has the Rocket answer, and it is the most tenant-favorable parking clause in the set otherwise: “Landlord shall not be responsible for enforcing Tenant’s parking rights against any third parties."[5] Enforcement is the thing landlords will not take on, at any rent, in any market.
When the spaces go away#
CarGurus’ lease gives the garage operator a free hand: the right to alter the facility “as it sees fit,” “including the reduction in area of the same,” to reserve spaces for visitors, small cars, electric vehicles, disabled drivers “or for other tenants or guests,” to flip between valet and self park, and to install “automated parking systems (such as lifts or stackers).” Four years later the landlord’s successor sent a letter, and it shows what that discretion is worth:
“Notwithstanding the provisions of Section 10.1 of the Lease, for the period prior to June 1, 2024 only, (i) Landlord shall not be obligated to provide the Parking Privileges to Tenant, (ii) Landlord may close the Parking Facility and cease operations thereof, and (iii) Tenant shall not be required to pay the Monthly Parking Charge.”
That is the bargain written out. No parking, no parking charge, by agreement, in a signed side letter. Which is the right outcome if the tenant is not using the garage. It is the wrong outcome if the tenant has 91 employees who drive, and the lease’s own remedy for that is the next thing to read.
PROS negotiated the alternative, and it is the fullest version I have seen in a filed lease. If more than ten percent of the unreserved spaces become unavailable for more than five consecutive business days, the landlord provides replacement spaces in equal number, at the closest reasonably available location, at no cost. If the replacement lot is more than 1,000 feet away, it provides a shuttle. If it fails to do either, PROS may go get the parking itself and bill the landlord. And then there is a ladder, with the same outside date structure as the late delivery termination right: a credit at the per diem parking rate for thirty days after replacement parking fails, then double, then double again every thirty days, “provided, however, in no event shall the Rent credit hereunder with respect to any month during the Term exceed the monthly Base Rental.”
Run that ceiling. PROS’ parking rent is about $19,289 a month and its first year base rental is $286,540.31 a month, so the doubling runs at roughly $19,300, then $38,600, then $77,200, then $154,300, and the fifth thirty day period’s $308,600 is the first one the cap cuts down. A tenant reading the cap as the landlord’s protection has it backwards: the cap does not bind until the garage has been unusable for about five months, by which time the credit is worth fifteen times the parking bill. The lease even shows its own worked example, fifty spaces at $1.39 a day for thirty days, $2,085.00. Clauses that do their own arithmetic are clauses someone intended to use.
The sole remedy language is still there, and it is doing real work: a parking failure “shall under no circumstances be deemed a default by Landlord under the Lease so as to permit Tenant to terminate the Lease, in whole or in part.” The tenant traded termination for a ladder. That is a fair trade when the ladder has rungs.
The abatement that reads broad and computes small#
CarGurus’ lease does something clever that is easy to misread as a win. Its Section 7.12 remedy is triggered by any interruption that “shall materially interfere with Tenant’s use and enjoyment of the Premises, or any portion thereof, or materially interfere with Tenant’s ability to use Tenant’s Parking Privileges.” Losing the garage is a Service Interruption. The abatement that follows is not the parking charge. It is “an equitable abatement of Annual Fixed Rent, Tenant’s Tax Share, and Tenant’s Expense Share,” which on $1.48 million a month is a much larger pot than $44,590.
Then read how it is measured: “based on the nature and duration of the Material Service Interruption and the area of the Premises affected, for any and all days … that both (x) the Material Service Interruption is continuing and (y) Tenant does not use such affected areas of the Premises for a bona fide business purpose.”
A closed garage affects no area of the premises, and the tenant keeps using every square foot of it. The trigger is about parking and the measure is about floor area, so the computation for a pure parking outage runs through to a number near zero. This is the same arithmetic failure as a rent abatement sized by a deductible that exceeds the loss, which the named storm post worked through: the clause is real, the trigger fires, and the formula returns nothing. If you want parking abated, the abatement has to be denominated in parking.
The lease that charges nothing and asks permission#
Capricor Therapeutics signed a lease with an Alexandria entity for the whole of 9625 Towne Centre Drive in San Diego on 9 July 2026, about 171,001 square feet at $67.20 per square foot. Its Section 10 is the other end of the range:
“Tenant shall have the exclusive right, at no additional cost during the Term, to use all of the parking spaces located at the Project, which as of the Effective Date of this Lease currently total 382 parking spaces. Except in the event of an emergency, and subject to Legal Requirements, Force Majeure or a Taking, (a) Landlord shall not reduce, relocate or reconfigure the parking areas located in the Project without the prior written consent of Tenant, which consent shall not be unreasonably withheld, conditioned or delayed”
All the spaces, free, and a consent right over the lot’s geometry. That is what a single tenant building buys, and 382 spaces across 171,001 square feet is a ratio of 2.23 per 1,000, below what any of the multi-tenant leases here promise. The useful part is not that the parking is free. It is the consent right, which is the only provision in six documents that stops a landlord from redrawing the lot, and it cost a sentence.
The carve-outs are worth reading twice, because the grant is “subject to … the exercise by Landlord of its rights hereunder,” and the landlord’s rights elsewhere in the lease include its own construction and alteration rights. A consent requirement in Section 10 that yields to Landlord’s rights under the rest of the lease is narrower than it looks on first read.
Parking after the term you signed for#
Parking rights tend to be drafted for the original term and then inherited by a renewal nobody re-priced.
Sage’s amendment extended the term through 31 August 2029 and grants the nineteen spaces at the published rate, adjusted from time to time, with no end date tied to the original term. The rate in 2029 is whatever the building posts in 2029.
Alnylam’s is the sharpest version. Thirty passes continue at the prevailing charge, and then eight more sit on a different footing: “Landlord shall provide Tenant with an additional eight (8) parking passes on a ’tenant-at-will’ basis at the same prevailing parking charge, provided Landlord shall have the right to take back such tenant-at-will spaces upon six (6) months’ prior written notice to Tenant in the event that a portion of the garage is redeveloped into office space.” The tenant gets eight spaces and a six month warning that a garage floor is becoming rentable area. There is one real concession attached: “In no event shall such tenant-at-will spaces be allocated to another tenant in the Building.”
CarGurus’ give-back is a one way door, the same shape as the contraction timing in the must-take post. The tenant may cut its parking count on ninety days’ notice. Getting back to 91 requires another ninety days’ notice, and the operator has no obligation to supply the spaces “unless the Parking Facility Manager determines in its sole good faith discretion that a sufficient number of parking spaces are then available.” Rocket’s amendment does the same thing with a defined ceiling: after a reduction and a later increase, “in no event shall Tenant have the right to increase the number of QL Parking Spaces above the Maximum QL Parking Spaces.” A tenant that gave spaces back during a hybrid work experiment in 2021 and wants them back in 2026 is asking a favor, not exercising a right.
Does your lease say what parking will cost in year ten?#
Six documents, six different answers to the same four questions.[6] What does a space cost today. How does that number move. How many spaces are promised, and to whom else. What happens when they are not there. The answers live in a parking exhibit, a side letter, a definition of Rent in Article 2, and an abatement formula in Article 7, and no two of them are in the same place twice.
Acrebase reads those four answers out of the document and puts them next to each other across a portfolio, so a clause capped at five percent a year and one tied to “the published rates applicable to the Building” stop looking like the same clause. The clause library holds the escalator your counsel approved, with the fallbacks in the order you actually trade them, which for parking is usually a cap first, then a notice period, then a floor on the space count. The AI drafts and redlines against that standard, so the difference between a reserved space the landlord monitors and one it will not police is a position you take on every deal instead of a sentence that survived because the exhibit was attached at 11 p.m.
If you are a landlord, keep the discretion and price it honestly. The right to alter the facility as you see fit, to reconfigure, to flip valet and self park, and to re-reserve spaces for other tenants is worth more than the eighty seven percent premium on a reserved stall, and the CarGurus side letter shows why: a landlord who can close the garage can renegotiate it. Where you should expect to give ground is on the two cheap things. A cap on annual increases costs you almost nothing if your real rate moves at market, and it is the single easiest concession to trade for a longer term. Enforcement is the other one, and there you should hold: monitoring a reserved space is an operating obligation with no ceiling, which is why both Rocket’s and Alexandria’s forms refuse it outright. If you give a remedy, give PROS’ remedy. Replacement parking, a shuttle, and sole remedy language that takes termination off the table is a far better trade than an uncapped abatement.
If you are a tenant, do four things before the exhibit gets attached. Compound the escalator to the end of the term, including every renewal you intend to exercise, and put the total in the same model as the base rent. On CarGurus’ numbers that is roughly $11.0 million, and it is the only way the clause ever gets anyone’s attention. Second, ask what the stated rate is a fact about: if the sentence says “then prevailing” or “published rates,” the number in the parenthesis is history, not a price, and the fix is a percentage cap with a notice period. Third, check the ratio arithmetic against the space count and the rentable area, then check whether a remeasurement moves it, because in most forms it does. Fourth, read the remedy in the denomination it pays. An abatement of base rent measured by the area of the premises you stop using will pay you nothing for a closed garage. What pays is a credit denominated in parking charges, replacement spaces within a stated distance, a shuttle, and the right to go buy parking and send the bill. Ask for the consent right on reconfiguration too. Capricor got it in one sentence, and nobody else in this set thought to ask.
Footnotes
[1] Fourth Amendment to Amended and Restated Lease between 611 WEBWARD AVENUE MASTER TENANT LLC, as Landlord, and ROCKET MORTGAGE, LLC (formerly Quicken Loans, LLC), as Tenant, for premises at 611 Woodward Avenue, Detroit, Michigan 48226. Dated August 10, 2022, effective retroactively as of March 7, 2022. Filed as Exhibit 10.3 to Rocket Companies’ Form 10-Q, accession 0001805284-22-000285, on 9 November 2022: https://www.sec.gov/Archives/edgar/data/1805284/000180528422000285/a103rocketcompaniesincex10.htm
Paragraph 6 is the parking provision. It allocates two unreserved spaces per 1,000 rentable square feet of the Fourth Amendment Expansion Space plus the five Qube Parking Spaces on floor LL1, prices the former at the charges “then payable for the QL Parking Spaces under Section 35 of the Original Lease (as such charges escalate from time to time)” and the latter at the flat escalator quoted in the body. Subparagraph (c) states the Maximum QL Parking Spaces formula. The existing premises are described as approximately 407,050 rentable square feet, which is the figure the 2,442 space calculation uses. Section 35 of the original lease, which carries the operative parking mechanics for the QL Parking Spaces, is not part of this exhibit, so the escalation rate for the bulk of Rocket’s spaces is not public. The space numbers 8 through 12 appear in the text; the exhibit C site plan they point to is not reproduced in the filing.
[2] Indenture of Lease between S&A P-12 PROPERTY LLC, as Landlord, and CARGURUS, INC., as Tenant, for 1001 Boylston Street, Boston, Massachusetts, with an Effective Date of December 19, 2019. Filed as Exhibit 10.1 to CarGurus’ Form 8-K, accession 0001193125-19-320928, on 20 December 2019: https://www.sec.gov/Archives/edgar/data/1494259/000119312519320928/d851940dex101.htm
Article X is the parking article and Section 7.12 is the service interruption remedy. The data sheet gives the Rentable Floor Area of the Premises as 273,595 square feet, an original term of 180 months, two five year extension options, and the annual fixed rent schedule used in the body ($17,769,995.25 for rent year 1, rising to $22,749,424.25 in rent year 15). Section 10.1(a) states the ratio as one space per 3,000 rentable square feet and parenthesizes the result as 91 cars; up to twenty five percent of the privileges are available around the clock and the rest from 7 a.m. to 7 p.m. on business days. Two artifacts of the filing survive text extraction: page numbers land inside sentences, so the document reads “Parking 40 Privileges” and “there will 41 be no increase,” and the valet sentence reads “change the operation of the Parking Facility from to self-parking system from a valet or managed parking system,” with the stray “from” in the record as filed. The fifteen year total of roughly $11.0 million and the year fifteen rate of about $924 are my calculation, holding the rate flat for two years and then applying the full five percent cap annually; the lease states only the $490.00 starting rate and the cap. The 2024 letter agreement quoted in the body is a separate document, from P-12 PROPERTY LLC as successor-in-interest, dated March 19, 2024, filed as Exhibit 10.2 to CarGurus’ Form 10-Q, accession 0000950170-24-056957: https://www.sec.gov/Archives/edgar/data/1494259/000095017024056957/carg-ex10_2.htm
[3] First Amendment to Lease between CLPF-CAMBRIDGE SCIENCE CENTER, LLC and SAGE THERAPEUTICS, INC., entered into as of April 4, 2018, amending a lease dated May 24, 2016 with Jamestown Premier 245 First, LLC as original landlord, for 245 First Street, Cambridge, Massachusetts. Filed as Exhibit 10.1 to Sage’s Form 10-Q, accession 0001564590-18-010492, on 3 May 2018: https://www.sec.gov/Archives/edgar/data/1597553/000156459018010492/sage-ex101_215.htm Section 8 is the parking provision quoted in the body; the extension term runs “from September 1, 2024 through August 31, 2029.” The amendment renders “Existing Premises” once as “Exiting Premises.”
The Alnylam quotations are from the First Amendment to Lease between RREEF AMERICA REIT II CORP. PPP and ALNYLAM PHARMACEUTICALS, INC., made as of the 30th day of September, 2020, amending a lease dated April 15, 2015, for Riverfront Office Park, 101 Main Street, Cambridge, Massachusetts. Filed as Exhibit 10.3 to Alnylam’s Form 10-Q, accession 0001178670-20-000019, on 5 November 2020: https://www.sec.gov/Archives/edgar/data/1178670/000117867020000019/alny2020q310-qex103.htm Section 5 is the parking provision. A page number lands inside the redevelopment sentence in the filed document, which reads “a portion of the garage is 3 redeveloped into office space,” and I have taken the stray 3 out of the quotation in the body. Article 39 of the 2015 lease, which sets the escalation mechanic behind “subject to increase from time to time as set forth in the Lease,” is not part of the exhibit.
The Avanir quotation is from the First Amendment to Summit Office Lease between ALISO VIEJO RP-V1, LLC and AVANIR PHARMACEUTICALS, INC., made as of September 27, 2013, for Suite 200, approximately 29,790 rentable square feet, in Aliso Viejo, California. Filed as Exhibit 10.29 to Avanir’s Form 10-K, accession 0001193125-13-468821, on 11 December 2013: https://www.sec.gov/Archives/edgar/data/858803/000119312513468821/d606421dex1029.htm Section 11 is one sentence long and is included only for the rate.
[4] Office Lease Agreement between THOR KIRBY 3 GROUP, LLC, as Landlord, and PROS, INC., as Tenant, made and entered into as of the 30th day of November, 2018, for The Kirby Collection, 3200 Kirby Drive, Houston, Texas 77098-3230. Filed as Exhibit 10.1 to PROS Holdings’ Form 8-K, accession 0001392972-18-000136, on 4 December 2018: https://www.sec.gov/Archives/edgar/data/1392972/000139297218000136/ex101officeleaseagreement.htm
The parking terms are in Exhibit “G” Parking Agreement, not in the body of the lease. Section 1 states the counts and tiered ratios, Section 3 the rates ($41.65 per unreserved space per month, $78.10 per reserved, VIP or valet space, market rent for expansion space parking, and all parking rent abated for the first thirty five full calendar months), Section 6 the oversell covenant and the Level 4 Valet remedy, and Section 7 the availability remedies and the Parking Failure credit. The 117,555 square foot premises figure is derived from Section 2.1, which states $29.25 per square foot and $3,438,483.75 per annum for lease months 1 through 12, and monthly base rental of $286,540.31. My ladder calculation uses 405 unreserved spaces at $41.65 plus 31 reserved at $78.10, which is $19,289.35 a month. Three gaps are in the filed document rather than in extraction: the ratio sentence runs “in the Premises 3.5 covered unreserved” with no conjunction, the worked example reads “ninety (95) days” with the words and the numeral disagreeing, and the availability sentence reads “are, except to the extent comprising a Reserved Space or located in the Parking Nest, shall be available.”
[5] Lease Agreement between ARE-SD REGION NO. 39 OWNER, LLC, as Landlord, and CAPRICOR THERAPEUTICS, INC., as Tenant, made this 9 day of July, 2026, for the entire building at 9625 Towne Centre Drive, San Diego, California, approximately 171,001 rentable square feet at an initial base rent of $67.20 per rentable square foot per year. Filed as Exhibit 10.2 to Capricor’s Form 10-Q, accession 0001104659-26-097294, on 14 August 2026: https://www.sec.gov/Archives/edgar/data/1133869/000110465926097294/capr-20260630xex10d2.htm Section 10 is the parking provision, quoted in the body except for its final sentence on enforcement, which the body also quotes. Exhibit 10.1 to the same filing is a License Agreement dated May 14, 2026 between the same parties for the same building, covering the transition period before the lease; its Section 11 carries an identical parking provision with Licensor and Licensee substituted and the same 382 space figure.
[6] On sources and method. These six documents were found through SEC EDGAR full text search at efts.sec.gov, which covers filings from 2001 onward, and every quotation was checked against the stripped text of the filing itself rather than against a search snippet. The phrases that find this clause family are the pricing and remedy formulations, not the subject: “then prevailing monthly parking rate,” “Monthly Parking Charge,” “Unreserved Parking Spaces” and “Parking Failure” each return a workable number of filings, while “parking” alone is in nearly every lease ever filed. The six were chosen because they disagree with each other in instructive ways, not as a sample of the market, and all six were filed because they were material to a public company, which skews toward Boston, Cambridge, San Diego and Houston and toward tenants with a lot of employees per square foot.
Two limits worth stating plainly. A survey of law firm client alerts, brokerage research and trade press on commercial parking provisions published between August and October 2026 turned up nothing dated in that window: the current writing on parking is about residential unbundling statutes and about ratios as a site selection question, not about the clause. So this post is built on the filed documents rather than on anyone’s commentary, and the gap is in what is being written, not a claim that the question is settled. And I looked for a reported decision construing an oversell covenant or a parking abatement formula of this kind and did not find one I could verify. Four of the six documents are amendments, which means the escalation and remedy mechanics usually sit in the un-amended original lease that was never filed. PROS, CarGurus and Capricor are complete documents, and they are where the full architecture is quotable.
One more thing I did not do. Every rate quoted here is the rate the document states as of its own execution date, and I made no attempt to find what any of these six garages charges today, because none of the operator agreements or rate schedules the clauses point to is a filed document. CarGurus’ $490.00 is accurate as of December 2019, Alnylam’s $350.00 as of September 2020, Sage’s $300.00 as of April 2018, PROS’ $41.65 and $78.10 as of November 2018, and Avanir’s $60.00 as of September 2013. The point of the post is that four of the six leases make no promise about the number after the date they state it.
Acrebase is AI-powered contract intelligence for commercial real estate. It drafts, redlines and proofreads leases and other CRE documents, extracts clauses and flags risk across a portfolio, and keeps a team’s approved clause library and negotiation playbook consistent from one deal to the next, with fallback positions drawn from how earlier negotiations actually went. Learn more at acrebase.com, or get in touch about pricing.