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 New Mexico Remeasurement Clause is a crucial component of lease agreements in the state, specifically addressing situations where discrepancies arise between the rentable area and the actual area of a space to be constructed. This clause allows for fair adjustments in rental rates, allocation of expenses, and lease terms based on the accurate measurement of the premises. Key terms associated with the New Mexico Remeasurement Clause include: 1. Rentable area: Refers to the total area of a premise that can be rented and includes both the actual usable space and a proportionate share of common areas such as lobbies, hallways, and restrooms. 2. Actual area: Represents the physical space measured based on predefined standards, excluding any common areas included in the rentable area. 3. Variance: Describes the discrepancy or difference between the rentable area and the actual area. This variance might arise due to measurement errors, architectural changes, or modifications to the original plans during construction. The New Mexico Remeasurement Clause caters to various types of variances that can occur when the actual area differs from the initial rentable area. Some commonly encountered types include: 1. Positive variance: In cases where the actual area exceeds the initially calculated rentable area, a positive variance occurs. This can happen due to design modifications or additions during construction. 2. Negative variance: Conversely, a negative variance occurs when the actual area falls short of the rentable area mentioned in the lease agreement. Common reasons for this could be construction errors, space reductions, or the exclusion of certain elements initially planned. 3. Adjustments in rent: The New Mexico Remeasurement Clause allows for appropriate adjustments in rental rates when there is a significant variance between the rentable and actual areas. Depending on whether the variance is positive or negative, the rent can be recalculated to reflect the accurate space measurement. 4. Allocation of expenses: The clause also determines how expenses related to the premises, such as utilities, maintenance fees, or property taxes, will be allocated between the landlord and tenant based on the revised area measurements. By incorporating the New Mexico Remeasurement Clause into lease agreements, both landlords and tenants can ensure equitable terms, fair rental rates, and transparent expense allocation, while appropriately addressing any variations between the rentable and actual area of a space to be built.
The New Mexico Remeasurement Clause is a crucial component of lease agreements in the state, specifically addressing situations where discrepancies arise between the rentable area and the actual area of a space to be constructed. This clause allows for fair adjustments in rental rates, allocation of expenses, and lease terms based on the accurate measurement of the premises. Key terms associated with the New Mexico Remeasurement Clause include: 1. Rentable area: Refers to the total area of a premise that can be rented and includes both the actual usable space and a proportionate share of common areas such as lobbies, hallways, and restrooms. 2. Actual area: Represents the physical space measured based on predefined standards, excluding any common areas included in the rentable area. 3. Variance: Describes the discrepancy or difference between the rentable area and the actual area. This variance might arise due to measurement errors, architectural changes, or modifications to the original plans during construction. The New Mexico Remeasurement Clause caters to various types of variances that can occur when the actual area differs from the initial rentable area. Some commonly encountered types include: 1. Positive variance: In cases where the actual area exceeds the initially calculated rentable area, a positive variance occurs. This can happen due to design modifications or additions during construction. 2. Negative variance: Conversely, a negative variance occurs when the actual area falls short of the rentable area mentioned in the lease agreement. Common reasons for this could be construction errors, space reductions, or the exclusion of certain elements initially planned. 3. Adjustments in rent: The New Mexico Remeasurement Clause allows for appropriate adjustments in rental rates when there is a significant variance between the rentable and actual areas. Depending on whether the variance is positive or negative, the rent can be recalculated to reflect the accurate space measurement. 4. Allocation of expenses: The clause also determines how expenses related to the premises, such as utilities, maintenance fees, or property taxes, will be allocated between the landlord and tenant based on the revised area measurements. By incorporating the New Mexico Remeasurement Clause into lease agreements, both landlords and tenants can ensure equitable terms, fair rental rates, and transparent expense allocation, while appropriately addressing any variations between the rentable and actual area of a space to be built.
