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 Minnesota Remeasurement Clause is a legal provision used in real estate contracts and leases to address discrepancies between the rentable area and actual area of a space being built. When constructing commercial or residential properties, it is common for variations to occur between the estimated rentable area and the final actual area of the space. These differences can create uncertainties in evaluating rental values and obligations, which is where the Minnesota Remeasurement Clause comes into play. This clause allows for the reassessment and adjustment of lease terms, rental rates, and expenses based on the actual area of the space once it is completed. When variances exist between the estimated rentable area and the actual area, the Minnesota Remeasurement Clause aims to ensure fairness and accuracy in leasing agreements. Types of Minnesota Remeasurement Clauses used in situations where variances exist between the rentable and actual area of a space to be built include: 1. Global Remeasurement Clause: This type of clause provides for the overall reassessment of the lease terms in case significant differences are found between the rentable and actual area. It allows for adjustments in rental rates, additional rent, and proportionate share of operating expenses, based on the revised area measurement. 2. Partial Remeasurement Clause: In certain situations, a clause may be included to address partial variances between the estimated and actual area. This clause defines a specific threshold or percentage beyond which adjustments to lease terms are triggered. It allows for recalculations only if the deviations exceed the predefined limit. 3. Remeasurement Provision for Common Areas: Apart from measuring the actual area of individual rental spaces, the Minnesota Remeasurement Clause may also encompass the remeasurement of common areas within a building. This provision ensures fairness in allocating common space costs to tenants based on revised area measurements. 4. Tenant's Right to Audit: In some cases, the Minnesota Remeasurement Clause may grant tenants the right to audit area measurements and associated calculations performed by the landlord or an independent party. This provision allows tenants to independently verify the accuracy of the rentable area and trigger necessary adjustments if discrepancies are discovered. It is important for both landlords and tenants to carefully review and understand the specifics of the Minnesota Remeasurement Clause to ensure fair and transparent lease agreements. Remeasurement clauses protect the interests of both parties by allowing for adjustments when variations occur between estimated and actual areas, thus promoting trust and clarity in commercial and residential real estate transactions in Minnesota.
