This office lease form describes provisions for using the area in the case of a single tenancy floor, within the exterior walls of the New Building, or, in the case of a multiple occupancy floor, within the exterior walls, party walls or corridor walls which is considered to be usable area .
Louisiana Provision Using Usable Area as the Measurement Standard for Midtown Manhattan Modern Office Towers: In the real estate industry, the Louisiana Provision is a term used to describe the measurement standard for commercial spaces in Midtown Manhattan's modern office towers. Unlike other regions where rentable square footage is used as the measuring standard, Louisiana Provision specifically employs usable area as the basis for determining the size and rental value of office spaces in this specific area. The idea behind the Louisiana Provision is to provide tenants with a fair and accurate representation of the actual usable space they will have in an office tower, taking into consideration factors such as common areas, hallways, and building amenities which may not be directly accessible to the tenant but contribute to the overall square footage of the building. By adopting the Louisiana Provision, real estate developers and landlords aim to create transparency and avoid misleading tenants with exaggerated rentable square footage figures. This standard helps both landlords and tenants to have a clear understanding of the actual space available to them, facilitating fair negotiations and lease agreements. It is important to note that while the Louisiana Provision is predominantly used in Midtown Manhattan modern office towers, other variations of measurement standards may exist in different regions or even within submarkets of New York City. Some additional types of provisions used in Midtown Manhattan modern office towers might include: 1. Rentable Square Footage (RSF): In some office towers, the Rentable Square Footage method is still used alongside or in place of the Louisiana Provision. This includes the calculation of the tenant's leased area plus a proportionate share of common areas such as restrooms, hallways, and building amenities. 2. Usable vs. Rentable Square Footage: In some cases, office spaces may be described using both usable and rentable square footage figures. This allows tenants to understand the difference between the actual usable area they will occupy and the rentable square footage, providing a more comprehensive understanding of the total space and its associated costs. 3. Efficiency Ratio: Another factor to consider in office towers is the efficiency ratio, which compares the usable square footage to the rentable square footage. This ratio helps tenants understand the portion of the total square footage that they will have direct access to and utilize efficiently. Understanding the Louisiana Provision and the various measurement standards used in Midtown Manhattan modern office towers is crucial for commercial tenants and landlords alike. By considering the type of measurement standard being used, tenants can accurately assess their space requirements and negotiate lease terms based on their specific needs, while landlords can ensure fair rental agreements and avoid potential disputes in the future.
