The Mobile County Commission released a statement about proposed rent increases for the City of Mobile’s use of office space in Government Plaza. The Commission said both the County and City have used the building since 1994. Rising operational costs have led the County to seek a rate adjustment for the City’s leased space.
The lease is calculated based on total building costs, divided by the share of office space each entity uses. The City of Mobile occupies 28% of the office space, or 127,326 square feet. The County stated that the City is billed only for the space it occupies, not for common areas or shared spaces. This differs from many commercial leases.
A 2020 independent study using 2019 data found the cost to operate Government Plaza was $15.11 per square foot. The County charged the City $11.23 per square foot in the first year of the current five-year lease, which started in 2021. This meant the County covered over $500,000 of the City’s costs in the first year and more than $5 million over the lease term…