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 Montana Remeasurement Clause is a legal provision commonly used in commercial real estate leases. It is employed when there are discrepancies or variances between the rentable area specified in the lease agreement and the actual area of the space being constructed or refurbished. This clause is particularly important to ensure fairness and accuracy in determining the rent and other charges based on the size of the leased premises. The purpose of the Montana Remeasurement Clause is to establish a method for recalculating or adjusting the rentable area when differences arise during the construction, remodeling, or expansion of a commercial space. Under this clause, the landlord and tenant agree on the process of remeasurement and the obligations that both parties have in this regard. In cases where variances exist between the rentable and actual area of a space to be built, there are different types of the Montana Remeasurement Clause that can be utilized. Some common types include: 1. Percentage Adjustment: This type of remeasurement clause involves adjusting the overall rent and operating expenses by a predetermined percentage in proportion to the differences in the actual and rentable areas. 2. Rent Adjustment Per Square Foot: Here, the rent is calculated based on the remeasured area, and then adjusted according to the rentable area specified in the lease agreement. The adjustment is typically made on a per square foot basis. 3. Expense Pass-Through: With this type of clause, any changes in operating expenses caused by the variances in the rentable and actual areas are apportioned to the tenant based on the ratio of the remeasured area to the rentable area. This ensures that the tenant pays their fair share of the adjusted expenses resulting from the remeasurement. 4. Remeasurement Process: The lease agreement may also outline the specific process for remeasurement, which generally involves engaging a qualified surveyor or architect to measure and certify the actual area of the space. This process ensures accuracy and transparency in determining the rentable area. The Montana Remeasurement Clause is designed to protect both the landlord and tenant from potential overpayment or underpayment of rent due to discrepancies in area measurements. It provides a mechanism for resolving such variances, ensuring that the parties involved can come to a fair agreement and maintain a mutually beneficial lease relationship.The Montana Remeasurement Clause is a legal provision commonly used in commercial real estate leases. It is employed when there are discrepancies or variances between the rentable area specified in the lease agreement and the actual area of the space being constructed or refurbished. This clause is particularly important to ensure fairness and accuracy in determining the rent and other charges based on the size of the leased premises. The purpose of the Montana Remeasurement Clause is to establish a method for recalculating or adjusting the rentable area when differences arise during the construction, remodeling, or expansion of a commercial space. Under this clause, the landlord and tenant agree on the process of remeasurement and the obligations that both parties have in this regard. In cases where variances exist between the rentable and actual area of a space to be built, there are different types of the Montana Remeasurement Clause that can be utilized. Some common types include: 1. Percentage Adjustment: This type of remeasurement clause involves adjusting the overall rent and operating expenses by a predetermined percentage in proportion to the differences in the actual and rentable areas. 2. Rent Adjustment Per Square Foot: Here, the rent is calculated based on the remeasured area, and then adjusted according to the rentable area specified in the lease agreement. The adjustment is typically made on a per square foot basis. 3. Expense Pass-Through: With this type of clause, any changes in operating expenses caused by the variances in the rentable and actual areas are apportioned to the tenant based on the ratio of the remeasured area to the rentable area. This ensures that the tenant pays their fair share of the adjusted expenses resulting from the remeasurement. 4. Remeasurement Process: The lease agreement may also outline the specific process for remeasurement, which generally involves engaging a qualified surveyor or architect to measure and certify the actual area of the space. This process ensures accuracy and transparency in determining the rentable area. The Montana Remeasurement Clause is designed to protect both the landlord and tenant from potential overpayment or underpayment of rent due to discrepancies in area measurements. It provides a mechanism for resolving such variances, ensuring that the parties involved can come to a fair agreement and maintain a mutually beneficial lease relationship.
