This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
New Hampshire Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share
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FAQ
The term ?Pro Rata? means proportional or in proportion. In the context of commercial real estate, the term ?Pro Rata Share? is a method of calculating a tenant's share of a building's expenses based upon a calculation defined in a tenant's lease.
The irony in New Hampshire is that it prides itself in having no income or sales tax, yet it ranks high on property taxes. That means New Hampshire relies most heavily on the property tax to fund local services and public education.
Every lease agreement outlines specific terms for these expenses, but typically, CAM expenses are based on the lessee's pro-rata share. This metric is calculated by dividing the square footage occupied by the tenant by the total square footage of the building and is usually specified in the lease agreement.
In general, the tenant's proportionate share is determined by taking the building's rentable square footage and dividing it by the tenant's rentable square footage. Local industry customs usually provide the landlord with the guiding principles for: Measuring the building.
The amount due to each shareholder is their pro rata share. This is calculated by dividing the ownership of each person by the total number of shares and then multiplying the resulting fraction by the total amount of the dividend payment. The majority shareholder's portion, therefore, is (50 / 100) x $200 = $100.
Proportionate Share of Operating Expenses means a fraction equal to the total Gross Rentable Area of the Premises divided by the total Gross Rentable Area of the Building.
In general, the tenant's proportionate share is determined by taking the building's rentable square footage and dividing it by the tenant's rentable square footage. Local industry customs usually provide the landlord with the guiding principles for: Measuring the building.
The pro-rata share is the percentage of expenses shared by the tenant for the shopping center or office building. In most leases, the pro-rata share is calculated as a fraction of the tenant's demised square footage divided by the total square footage of the shopping center or the building.