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 California Remeasurement Clause is a crucial component of commercial leasing agreements, particularly when it comes to the variances between the rentable and actual area of a space to be built. This clause ensures that landlords and tenants are on the same page regarding the measurement and calculation of square footage. When it comes to this clause, there are different types available that cater to specific scenarios. Let's delve into them: 1. Gross Measurement Remeasurement Clause: The Gross Measurement Remeasurement Clause is used when the lease agreement states that tenants will be charged rent based on the gross square footage of the premises. Gross square footage typically includes the entire space, including any common areas. 2. Rentable Measurement Remeasurement Clause: The Rentable Measurement Remeasurement Clause is commonly used when tenants are charged rent based on the rentable square footage, which includes the usable area of the space along with a proportionate share of common areas. This clause aims to ensure fairness by accurately measuring the space and defining the tenant's responsibilities. 3. Area Adjustment Remeasurement Clause: An Area Adjustment Remeasurement Clause is employed when there is a significant discrepancy between the estimated rentable area agreed upon during the lease negotiation phase and the actual measured area upon completion of the construction or improvement of the space. This clause allows the landlord or tenant to request an adjustment in rent based on the final measured area. 4. Base Building Standard Clause: The Base Building Standard Clause is essential when leasing a space that requires future build-outs or substantial improvements. It establishes a predefined standard for the construction of the base building by defining the amount of rentable area that will be provided to the tenant after the build-out is complete. In conclusion, the California Remeasurement Clause is an integral part of commercial lease agreements to ensure transparency and fairness in determining rent based on the variances between rentable and actual areas. The different types of remeasurement clauses mentioned above allow landlords and tenants to address specific scenarios, such as gross or rentable measurement, area adjustments, and base building standards.The California Remeasurement Clause is a crucial component of commercial leasing agreements, particularly when it comes to the variances between the rentable and actual area of a space to be built. This clause ensures that landlords and tenants are on the same page regarding the measurement and calculation of square footage. When it comes to this clause, there are different types available that cater to specific scenarios. Let's delve into them: 1. Gross Measurement Remeasurement Clause: The Gross Measurement Remeasurement Clause is used when the lease agreement states that tenants will be charged rent based on the gross square footage of the premises. Gross square footage typically includes the entire space, including any common areas. 2. Rentable Measurement Remeasurement Clause: The Rentable Measurement Remeasurement Clause is commonly used when tenants are charged rent based on the rentable square footage, which includes the usable area of the space along with a proportionate share of common areas. This clause aims to ensure fairness by accurately measuring the space and defining the tenant's responsibilities. 3. Area Adjustment Remeasurement Clause: An Area Adjustment Remeasurement Clause is employed when there is a significant discrepancy between the estimated rentable area agreed upon during the lease negotiation phase and the actual measured area upon completion of the construction or improvement of the space. This clause allows the landlord or tenant to request an adjustment in rent based on the final measured area. 4. Base Building Standard Clause: The Base Building Standard Clause is essential when leasing a space that requires future build-outs or substantial improvements. It establishes a predefined standard for the construction of the base building by defining the amount of rentable area that will be provided to the tenant after the build-out is complete. In conclusion, the California Remeasurement Clause is an integral part of commercial lease agreements to ensure transparency and fairness in determining rent based on the variances between rentable and actual areas. The different types of remeasurement clauses mentioned above allow landlords and tenants to address specific scenarios, such as gross or rentable measurement, area adjustments, and base building standards.
