This office lease clause lists a way to provide for variances between the rentable area of a "to be built" demised premises and the actual area after construction.
The Alabama Remeasurement Clause is a provision commonly included in real estate leases to address any discrepancies in the measurement of the rentable and actual area of a space to be constructed. This clause helps establish a fair and accurate basis for calculating the rent, particularly when there are variances between the initial estimates and the final measurements of the space. When leasing commercial properties, it is essential to consider the potential differences that may arise between the rentable area specified in lease agreements and the actual usable area available to the tenant. While the rentable area primarily includes the tenant's leased space, it may also encompass shared spaces such as corridors, common areas, or even vertical penetrations like stairwells and elevators. These shared areas are typically allocated to tenants based on a pro rata basis, known as the load factor. The Alabama Remeasurement Clause ensures that if significant variances exist between the initially estimated rentable area and the actual area, both the landlord and tenant have a mechanism to address such discrepancies. This clause allows for the reevaluation of the rent based on the newly measured or surveyed area. It is worth noting that there can be different variations of the Alabama Remeasurement Clause depending on the parties' negotiation and intent. Some common types include: 1. Exact Measurement: In this type, the clause stipulates that the rent will be adjusted based on the precise measurements obtained upon construction completion. If the measured area exceeds the estimated rentable area, the tenant might face higher rental costs. Conversely, if the actual area is smaller, the tenant could potentially benefit from a lower rent. 2. Allowable Deviation: This clause permits a certain percentage or square footage deviation between the estimated and actual rentable area. For example, the lease may state that any discrepancy within a 5% range will not trigger a rent adjustment. However, if the variance exceeds this threshold, the rent will be recalculated based on the measured area. 3. Fixed Adjustment: This type of clause establishes a predetermined adjustment formula or rate to account for any variances between the estimated and actual rentable area. For instance, the lease might specify that the rent will be adjusted by a fixed amount per square foot if the actual area deviates from the original estimate. It is crucial to clearly define the Alabama Remeasurement Clause in the lease agreement, addressing any specific rules, procedures, or responsibilities regarding the measurement process, costs incurred, and the timing of potential adjustments. Properly drafting and understanding this clause helps ensure fairness and transparency for both the landlord and tenant when determining rental obligations in situations where variances exist between the rentable and actual area of a space to be built in Alabama.
The Alabama Remeasurement Clause is a provision commonly included in real estate leases to address any discrepancies in the measurement of the rentable and actual area of a space to be constructed. This clause helps establish a fair and accurate basis for calculating the rent, particularly when there are variances between the initial estimates and the final measurements of the space. When leasing commercial properties, it is essential to consider the potential differences that may arise between the rentable area specified in lease agreements and the actual usable area available to the tenant. While the rentable area primarily includes the tenant's leased space, it may also encompass shared spaces such as corridors, common areas, or even vertical penetrations like stairwells and elevators. These shared areas are typically allocated to tenants based on a pro rata basis, known as the load factor. The Alabama Remeasurement Clause ensures that if significant variances exist between the initially estimated rentable area and the actual area, both the landlord and tenant have a mechanism to address such discrepancies. This clause allows for the reevaluation of the rent based on the newly measured or surveyed area. It is worth noting that there can be different variations of the Alabama Remeasurement Clause depending on the parties' negotiation and intent. Some common types include: 1. Exact Measurement: In this type, the clause stipulates that the rent will be adjusted based on the precise measurements obtained upon construction completion. If the measured area exceeds the estimated rentable area, the tenant might face higher rental costs. Conversely, if the actual area is smaller, the tenant could potentially benefit from a lower rent. 2. Allowable Deviation: This clause permits a certain percentage or square footage deviation between the estimated and actual rentable area. For example, the lease may state that any discrepancy within a 5% range will not trigger a rent adjustment. However, if the variance exceeds this threshold, the rent will be recalculated based on the measured area. 3. Fixed Adjustment: This type of clause establishes a predetermined adjustment formula or rate to account for any variances between the estimated and actual rentable area. For instance, the lease might specify that the rent will be adjusted by a fixed amount per square foot if the actual area deviates from the original estimate. It is crucial to clearly define the Alabama Remeasurement Clause in the lease agreement, addressing any specific rules, procedures, or responsibilities regarding the measurement process, costs incurred, and the timing of potential adjustments. Properly drafting and understanding this clause helps ensure fairness and transparency for both the landlord and tenant when determining rental obligations in situations where variances exist between the rentable and actual area of a space to be built in Alabama.
