This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
Arizona Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share are crucial aspects of real estate leasing agreements that play a significant role in determining the obligations and responsibilities of both landlords and tenants in relation to property taxes. In Arizona, the Measurement Representation refers to the official measurement analysis of a leased space. This analysis aims to accurately determine the size or area of the rented property, which is essential for various purposes such as rent calculations, space planning, and determining the tenant's proportionate share of property taxes. The measurement representation typically includes details like floor area, ceiling heights, and other relevant measurements. Proportionate Share Adjustment (PSA) is another critical component associated with Arizona tenant leasing agreements. It refers to the method used to calculate a tenant's share of property taxes based on the leased space's proportionate use within a larger property or building. This adjustment ensures fairness, as tenants are only responsible for the proportionate share of the property tax burden based on the size of their leased space compared to the total property. Furthermore, the Proportionate Tax Share is the actual amount of property taxes that a tenant is required to pay based on their proportionate share of the leased space. It is calculated by applying the proportionate share adjustment to the total property tax liability. Different types of Measurement Representations and Proportionate Share Adjustments may exist depending on the specific nature of the lease agreement. For example, some may involve a Gross Leasable Area (GLA) measurement representation, which considers only the space specifically rented by the tenant. Others may use a Rentable Area (RA) measurement representation, which encompasses not only the rented space but also common areas shared by multiple tenants. In terms of Proportionate Share Adjustment, different lease agreements may have alternative methods for calculating tenants' proportionate shares. For instance, some leases may base the adjustment solely on square footage, while others may consider additional factors such as floor level, location within the building, or the tenant's specific use of the premises. Overall, the Arizona Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share are essential tools within leasing agreements, ensuring transparency and fairness when it comes to property tax responsibilities between landlords and tenants. By explicitly defining these aspects, both parties can have a clear understanding of their obligations and avoid any potential disputes associated with property tax calculations.
