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 Arizona Remeasurement Clause is a legal provision used in commercial real estate leases to address discrepancies between the rentable area (the area used to calculate rent) and the actual area of a space to be built. This clause becomes crucial when there are variations or variances in measurements that can affect rent calculations and lease terms. When a property is being developed or leased, it is important for both the landlord and tenant to have a clear understanding of the area they are renting or leasing. However, due to construction errors, architectural modifications, or changes made during the leasing process, discrepancies can occur between the rentable area stated in the lease agreement and the actual area of the space. The Arizona Remeasurement Clause allows parties to accurately measure and determine the rentable area of the space, ensuring fair and accurate rental calculations. This clause enables both parties to address discrepancies and establish a course of action when variations are identified. Types of Arizona Remeasurement Clauses Used When Variances Exist Between Rentable and Actual Area: 1. Binding Remeasurement Clause: This clause stipulates that both the landlord and tenant agree to the remeasurement process and consider the revised area as the basis for rental calculations going forward. The rent is adjusted accordingly based on the outcome of the remeasurement. 2. Non-Binding Remeasurement Clause: This type of clause allows either the landlord or tenant to initiate a remeasurement process to address any discrepancies. However, the outcome of the remeasurement is for informational purposes only, and the rent may not be adjusted based on the revised area. 3. Arbitration Remeasurement Clause: In cases where disputes arise regarding measurements, an arbitration remeasurement clause can be included. This clause stipulates that if the parties cannot agree on a remeasurement, a neutral third-party arbitrator will be appointed to settle the dispute. The arbitrator's decision will be binding and final for rent calculations. 4. Remeasurement Clause with Rent Adjustment Cap: In some cases, there may be a cap on how much the rent can be adjusted based on the remeasurement results. This clause ensures that the rent adjustment remains within predetermined limits, reducing uncertainties and potential disputes. It is important for both landlords and tenants to carefully review and understand the specific remeasurement clause included in their lease agreement. Consulting with legal professionals experienced in Arizona real estate law can provide valuable guidance and ensure that the terms of the remeasurement clause are fair and beneficial for both parties involved.The Arizona Remeasurement Clause is a legal provision used in commercial real estate leases to address discrepancies between the rentable area (the area used to calculate rent) and the actual area of a space to be built. This clause becomes crucial when there are variations or variances in measurements that can affect rent calculations and lease terms. When a property is being developed or leased, it is important for both the landlord and tenant to have a clear understanding of the area they are renting or leasing. However, due to construction errors, architectural modifications, or changes made during the leasing process, discrepancies can occur between the rentable area stated in the lease agreement and the actual area of the space. The Arizona Remeasurement Clause allows parties to accurately measure and determine the rentable area of the space, ensuring fair and accurate rental calculations. This clause enables both parties to address discrepancies and establish a course of action when variations are identified. Types of Arizona Remeasurement Clauses Used When Variances Exist Between Rentable and Actual Area: 1. Binding Remeasurement Clause: This clause stipulates that both the landlord and tenant agree to the remeasurement process and consider the revised area as the basis for rental calculations going forward. The rent is adjusted accordingly based on the outcome of the remeasurement. 2. Non-Binding Remeasurement Clause: This type of clause allows either the landlord or tenant to initiate a remeasurement process to address any discrepancies. However, the outcome of the remeasurement is for informational purposes only, and the rent may not be adjusted based on the revised area. 3. Arbitration Remeasurement Clause: In cases where disputes arise regarding measurements, an arbitration remeasurement clause can be included. This clause stipulates that if the parties cannot agree on a remeasurement, a neutral third-party arbitrator will be appointed to settle the dispute. The arbitrator's decision will be binding and final for rent calculations. 4. Remeasurement Clause with Rent Adjustment Cap: In some cases, there may be a cap on how much the rent can be adjusted based on the remeasurement results. This clause ensures that the rent adjustment remains within predetermined limits, reducing uncertainties and potential disputes. It is important for both landlords and tenants to carefully review and understand the specific remeasurement clause included in their lease agreement. Consulting with legal professionals experienced in Arizona real estate law can provide valuable guidance and ensure that the terms of the remeasurement clause are fair and beneficial for both parties involved.
