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 Massachusetts remeasurement clause is a legal provision used when there are discrepancies between the rentable and actual area of a space to be built. This clause is designed to address situations where the actual square footage of a space differs from what was initially specified in the lease or construction plans. In commercial real estate, it is common for landlords and tenants to agree upon a rentable area of a space, which includes not only the physical area but also a portion of common spaces such as hallways, elevators, and restrooms. This rentable area is used as a basis for calculating rent and other charges. However, during the construction or renovation process, it is possible for variations to occur in the actual area constructed compared to the initial plans. These variations can lead to discrepancies between the rentable and actual area, potentially affecting the agreed-upon rental terms. To address this issue, the Massachusetts remeasurement clause allows for an adjustment to be made in the rent and other charges to reflect the actual area of the space. This adjustment can be upward or downward, depending on whether the actual area is larger or smaller than the rentable area initially agreed upon. There are two main types of Massachusetts remeasurement clauses used when variances exist between the rentable and actual area of a space to be built: 1. Upside Remeasurement Clause: This clause is used when the actual area of the space is larger than the rentable area. In such cases, the landlord may be entitled to increase the rent and other charges to reflect the larger area. The upside remeasurement clause typically outlines the method of calculation and the percentage increase in the rent based on the difference in square footage. 2. Downside Remeasurement Clause: This clause is used when the actual area of the space is smaller than the rentable area. In such cases, the tenant may be entitled to a reduction in rent or other charges to account for the smaller area. The downside remeasurement clause usually details the method of calculation and the percentage decrease in the rent based on the variance in square footage. It is important for both landlords and tenants to carefully review and negotiate the terms of the remeasurement clause in their lease agreements to ensure clarity and fairness in the event of variations in the actual area of a built space. Seeking legal advice from a qualified real estate attorney in Massachusetts is advisable to ensure compliance with local laws and regulations.The Massachusetts remeasurement clause is a legal provision used when there are discrepancies between the rentable and actual area of a space to be built. This clause is designed to address situations where the actual square footage of a space differs from what was initially specified in the lease or construction plans. In commercial real estate, it is common for landlords and tenants to agree upon a rentable area of a space, which includes not only the physical area but also a portion of common spaces such as hallways, elevators, and restrooms. This rentable area is used as a basis for calculating rent and other charges. However, during the construction or renovation process, it is possible for variations to occur in the actual area constructed compared to the initial plans. These variations can lead to discrepancies between the rentable and actual area, potentially affecting the agreed-upon rental terms. To address this issue, the Massachusetts remeasurement clause allows for an adjustment to be made in the rent and other charges to reflect the actual area of the space. This adjustment can be upward or downward, depending on whether the actual area is larger or smaller than the rentable area initially agreed upon. There are two main types of Massachusetts remeasurement clauses used when variances exist between the rentable and actual area of a space to be built: 1. Upside Remeasurement Clause: This clause is used when the actual area of the space is larger than the rentable area. In such cases, the landlord may be entitled to increase the rent and other charges to reflect the larger area. The upside remeasurement clause typically outlines the method of calculation and the percentage increase in the rent based on the difference in square footage. 2. Downside Remeasurement Clause: This clause is used when the actual area of the space is smaller than the rentable area. In such cases, the tenant may be entitled to a reduction in rent or other charges to account for the smaller area. The downside remeasurement clause usually details the method of calculation and the percentage decrease in the rent based on the variance in square footage. It is important for both landlords and tenants to carefully review and negotiate the terms of the remeasurement clause in their lease agreements to ensure clarity and fairness in the event of variations in the actual area of a built space. Seeking legal advice from a qualified real estate attorney in Massachusetts is advisable to ensure compliance with local laws and regulations.
