Ambassador Church has operated its administrative offices within 1,550 square feet of space on the Plaza Level of the Brea Civic & Cultural Center since February 1, 2014. The current Lease, which expires January 31, 2019, provides for a three-year term with a two-year extension and includes annual rent adjustments which Ambassador Church has implemented. They are currently paying $1.70 per square foot totaling $2,631.03 in monthly rent (Note - Exact calculations were used to determine monthly and annual rent. Figures provided in price per square foot show rounding for purpose of display).
The rent for the space over the past five years has been as follows:
| Year |
Price per square foot |
Price per square foot per year |
Monthly Rent |
Annual Rent |
| 1 |
$1.40 |
$16.80 |
$2,170.00 |
$26,040.00 |
| 2 |
$1.50 |
$18.00 |
$2,325.00 |
$27,900.00 |
| 3 |
$1.60 |
$19.20 |
$2,480.00 |
$29,760.00 |
| 4 |
$1.65 |
$19.78 |
$2,554.40 |
$30,652.80 |
| 5 |
$1.70 |
$20.37 |
$2,631.03 |
$31,572.38 |
Over the years, Ambassador Church has been an excellent tenant and has always paid their rent on time. They are respectful of the City’s facilities, and work well with City staff. Ambassador also continues to use the Curtis Theater for their worship services under a separate use agreement with the City, which has been active since 2008. Their primary use for the subject lease space is for the Church's administrative office functions with minor incidental use of two rooms for classroom space on the weekend.
With the current lease agreement coming to an end on January 31, 2019, Ambassador Church and staff are proposing a renewal of the lease for a five-year term commencing on February 1, 2019, at $1.76 per square foot for a monthly rent amount of $2,733.64. The starting rent for the new lease represents an increase in CPI of 3.9% over the current rent of $2,631.03. Staff compared this rate to approximately 20 commercial leases in Brea and narrowed the focus to properties positioned as gross modified leases, or leases where the landlord generally pays for certain operating costs. For example, the City of Brea will pay for the maintenance and upkeep of the shared parking, restrooms, elevators, landscaping, and other common amenities while Ambassador will pay for and maintain the upkeep for the interior of their leased space. Based on the research, the proposed monthly rent is within the market range, at the lower end of the surveyed properties and commensurate with the constraints and unique characteristics of the facility and this tenant space.
Market Comparison:
| Location |
Price per square foot |
Price per square foot per year |
| 770 S. Brea Blvd. |
$1.74 |
$20.88 |
| 265 S. Randolph Ave. |
$1.90 |
$22.80 |
| 3000 E. Birch St. |
$1.90 |
$22.80 |
| 3700 Saturn St. |
$2.05 |
$24.60 |
| 3030 Saturn St. |
$2.05 |
$24.60 |
| Average |
$1.93 |
$23.14 |
The rent for the space will be as follows:
| Year |
Price per square foot |
Price per square foot per year |
Monthly Rent |
Annual Rent |
| 6 |
$1.76 |
$21.16 |
$2,733.64 |
$32,803.71 |
| 7-10* |
TBD |
TBD |
TBD |
TBD |
*Rent increased annually by CPI, floored at 2% and capped at 4%
The proposed five-year term does not include extensions. Any renewals will be brought back for City Council consideration. Annual increases based on CPI will be floored at 2% and capped at 4%. Provisions added to the new lease include a two-month security deposit, access for regular inspections, and a “120 day notice or 120 day rent” early termination provision.
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