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.
Missouri Remeasurement Clause: Understanding its Importance When Variances Occur Between Rentable and Actual Area in Construction Projects In construction projects across Missouri, it is not uncommon to encounter discrepancies between the rentable area and the actual area of a space being built. These variances can lead to significant implications for landlords and tenants, making it crucial to include a Missouri Remeasurement Clause in lease agreements. This clause serves as a legal provision that addresses such discrepancies and outlines the necessary steps to measure and adjust the rentable area. Key Elements of the Missouri Remeasurement Clause When including a Remeasurement Clause in a lease agreement, it is essential to incorporate specific elements to ensure clarity and fairness for both parties involved. Here are some key aspects to consider: 1. Definition of Rentable Area: The clause should establish a clear definition of the "rentable area" and outline the measurement standards utilized in determining it. This includes considering areas such as corridors, common spaces, and amenities that are shared amongst multiple tenants. 2. Definition of Actual Area: The Remeasurement Clause should provide a precise definition of the "actual area" of the space being built. This may involve measuring the interior walls or accounting for any structural features that could impact the usable square footage. 3. Measurement Process: The clause should specify the measurement process to be followed, including the procedures, industry standards, and any accredited professionals involved. This ensures consistency and credibility in determining the actual area. Types of Missouri Remeasurement Clauses 1. Base Building Remeasurement Clause: This type of clause focuses on the measurement of the "shell" or base building area that includes the structural components and core utilities. Tenants are responsible for measuring and paying rent on their designated usable area within this base building. 2. Gross-Up Remeasurement Clause: This clause accounts for shared amenities or common areas in a property. It adjusts the rentable area by allocating a portion of these spaces to individual tenants. This ensures fair distribution of costs amongst all tenants, reflecting their respective usage of the shared amenities. 3. Pro rata Remeasurement Clause: This type of clause applies when multiple tenants occupy a property with varying rentable or leasable areas. It determines the proportionate share of common expenses, such as maintenance fees, based on each tenant's rental area percentage. Importance of Incorporating a Remeasurement Clause Including a comprehensive Remeasurement Clause in lease agreements is essential for several reasons: 1. Equity: The clause ensures fairness in determining rentable area, preventing any potential disputes or disagreements between landlords and tenants. 2. Cost Allocation: With accurate measurements, the Remeasurement Clause enables fair allocation of costs associated with shared amenities, common areas, or utilities, avoiding any undue financial burden on tenants. 3. Legal Protection: By outlining the measurement process and professionals involved, the clause provides legal protection for both landlords and tenants involved in the construction project. In conclusion, the Missouri Remeasurement Clause serves as a crucial mechanism for addressing variances between the rentable and actual area of spaces being built. By including this clause in lease agreements and understanding its different types, landlords and tenants can navigate discrepancies relating to square footage and ensure a fair and transparent relationship throughout the entire construction process.Missouri Remeasurement Clause: Understanding its Importance When Variances Occur Between Rentable and Actual Area in Construction Projects In construction projects across Missouri, it is not uncommon to encounter discrepancies between the rentable area and the actual area of a space being built. These variances can lead to significant implications for landlords and tenants, making it crucial to include a Missouri Remeasurement Clause in lease agreements. This clause serves as a legal provision that addresses such discrepancies and outlines the necessary steps to measure and adjust the rentable area. Key Elements of the Missouri Remeasurement Clause When including a Remeasurement Clause in a lease agreement, it is essential to incorporate specific elements to ensure clarity and fairness for both parties involved. Here are some key aspects to consider: 1. Definition of Rentable Area: The clause should establish a clear definition of the "rentable area" and outline the measurement standards utilized in determining it. This includes considering areas such as corridors, common spaces, and amenities that are shared amongst multiple tenants. 2. Definition of Actual Area: The Remeasurement Clause should provide a precise definition of the "actual area" of the space being built. This may involve measuring the interior walls or accounting for any structural features that could impact the usable square footage. 3. Measurement Process: The clause should specify the measurement process to be followed, including the procedures, industry standards, and any accredited professionals involved. This ensures consistency and credibility in determining the actual area. Types of Missouri Remeasurement Clauses 1. Base Building Remeasurement Clause: This type of clause focuses on the measurement of the "shell" or base building area that includes the structural components and core utilities. Tenants are responsible for measuring and paying rent on their designated usable area within this base building. 2. Gross-Up Remeasurement Clause: This clause accounts for shared amenities or common areas in a property. It adjusts the rentable area by allocating a portion of these spaces to individual tenants. This ensures fair distribution of costs amongst all tenants, reflecting their respective usage of the shared amenities. 3. Pro rata Remeasurement Clause: This type of clause applies when multiple tenants occupy a property with varying rentable or leasable areas. It determines the proportionate share of common expenses, such as maintenance fees, based on each tenant's rental area percentage. Importance of Incorporating a Remeasurement Clause Including a comprehensive Remeasurement Clause in lease agreements is essential for several reasons: 1. Equity: The clause ensures fairness in determining rentable area, preventing any potential disputes or disagreements between landlords and tenants. 2. Cost Allocation: With accurate measurements, the Remeasurement Clause enables fair allocation of costs associated with shared amenities, common areas, or utilities, avoiding any undue financial burden on tenants. 3. Legal Protection: By outlining the measurement process and professionals involved, the clause provides legal protection for both landlords and tenants involved in the construction project. In conclusion, the Missouri Remeasurement Clause serves as a crucial mechanism for addressing variances between the rentable and actual area of spaces being built. By including this clause in lease agreements and understanding its different types, landlords and tenants can navigate discrepancies relating to square footage and ensure a fair and transparent relationship throughout the entire construction process.
