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 Guam Remeasurement Clause is commonly used in commercial lease agreements to address variances between the rentable area and the actual area of a space that is being built or leased. This clause helps landlords and tenants determine accurate rental payments based on the usable space available. When leasing commercial properties, it is important for both parties to have a clear understanding of the rentable area, which includes the usable area and a proportional share of common areas such as hallways, lobbies, and restrooms. However, discrepancies can arise when the actual area of the space differs from the rentable area initially estimated or specified in the lease agreement. The Guam Remeasurement Clause provides a mechanism to adjust the rental terms when such variances occur. This clause allows for a remeasurement of the space upon completion to determine the actual area, which will then be used to calculate the rent going forward. It ensures that the tenant is not overpaying or underpaying for the space based on inaccurate measurements. There are different types of Guam Remeasurement Clauses that may be used depending on the specific circumstances and parties involved. These may include: 1. Fixed Percentage Remeasurement Clause: This type of clause stipulates that if the actual area varies by a certain percentage from the rentable area, the rent will be adjusted accordingly. For example, if the actual area is found to be 10% smaller than the rentable area, the rent will be reduced by 10%. 2. Dollar-for-Dollar Remeasurement Clause: In this case, any variance between the actual and rentable area directly translates into an adjustment in the rent. For instance, if the actual area is 100 square feet smaller, the rent will be reduced by a corresponding dollar amount based on the agreed-upon rental rate. 3. Negotiation-Based Remeasurement Clause: This type of clause allows the parties to negotiate the rent adjustment if a variance exists between the rentable and actual area. The negotiations may involve considering factors such as market rates, the degree of variance, and any potential offsetting benefits the tenant may receive. Implementing a Guam Remeasurement Clause in a commercial lease agreement is crucial to ensure fairness and accuracy in rental payments. By accounting for discrepancies in the rentable and actual area, both the landlord and tenant can avoid potential disputes and maintain a mutually beneficial agreement.
The Guam Remeasurement Clause is commonly used in commercial lease agreements to address variances between the rentable area and the actual area of a space that is being built or leased. This clause helps landlords and tenants determine accurate rental payments based on the usable space available. When leasing commercial properties, it is important for both parties to have a clear understanding of the rentable area, which includes the usable area and a proportional share of common areas such as hallways, lobbies, and restrooms. However, discrepancies can arise when the actual area of the space differs from the rentable area initially estimated or specified in the lease agreement. The Guam Remeasurement Clause provides a mechanism to adjust the rental terms when such variances occur. This clause allows for a remeasurement of the space upon completion to determine the actual area, which will then be used to calculate the rent going forward. It ensures that the tenant is not overpaying or underpaying for the space based on inaccurate measurements. There are different types of Guam Remeasurement Clauses that may be used depending on the specific circumstances and parties involved. These may include: 1. Fixed Percentage Remeasurement Clause: This type of clause stipulates that if the actual area varies by a certain percentage from the rentable area, the rent will be adjusted accordingly. For example, if the actual area is found to be 10% smaller than the rentable area, the rent will be reduced by 10%. 2. Dollar-for-Dollar Remeasurement Clause: In this case, any variance between the actual and rentable area directly translates into an adjustment in the rent. For instance, if the actual area is 100 square feet smaller, the rent will be reduced by a corresponding dollar amount based on the agreed-upon rental rate. 3. Negotiation-Based Remeasurement Clause: This type of clause allows the parties to negotiate the rent adjustment if a variance exists between the rentable and actual area. The negotiations may involve considering factors such as market rates, the degree of variance, and any potential offsetting benefits the tenant may receive. Implementing a Guam Remeasurement Clause in a commercial lease agreement is crucial to ensure fairness and accuracy in rental payments. By accounting for discrepancies in the rentable and actual area, both the landlord and tenant can avoid potential disputes and maintain a mutually beneficial agreement.
