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 Hawaii Remeasurement Clause is an essential provision commonly used in commercial real estate leases to address discrepancies between the rentable area and the actual area of a space to be built. When constructing a new building or renovating an existing one, it is crucial to accurately determine the usable space to ensure fair rent charges for both landlords and tenants. The purpose of the Hawaii Remeasurement Clause is to establish a mechanism for rent adjustments when significant deviations exist between the originally estimated rentable area and the actual area. By including this clause, both parties can protect their interests and ensure that rental charges are based on the actual usable space rather than the estimated size. Different types of Hawaii Remeasurement Clauses may exist, depending on how they are structured and the level of detail they provide. Some common variations of this clause include: 1. "Hawaii Remeasurement Clause based on actual area": This type of clause allows for adjustments in rent calculations based on the actual usable square footage determined after construction or renovation. If the actual area exceeds or falls short of the estimated rentable area, the rent will be recalculated accordingly. 2. "Hawaii Remeasurement Clause based on rentable area variances": This type of clause focuses on discrepancies between the estimated rentable area and the actual area. It may specify a threshold percentage that determines when rent adjustments are required. For example, if the actual area differs by more than 5% from the estimated rentable area, a rent adjustment may be triggered. 3. "Hawaii Remeasurement Clause with defined rent adjustment formula": This type of clause provides a clear formula to calculate the adjusted rent based on the variance between the estimated rentable area and the actual area. The formula typically considers factors such as the prevailing market rate, the size difference, and the lease duration to determine the fair rental adjustment. In summary, the Hawaii Remeasurement Clause ensures fair and accurate rent charges in commercial real estate leases by addressing deviations between the estimated rentable area and the actual area. Its variations allow for flexibility in determining rent adjustments based on actual or estimated area variances. Including this clause in lease agreements helps both landlords and tenants establish transparency and fairness in their financial arrangements.
