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 York Remeasurement Clause is a key element in commercial real estate leases, specifically used when discrepancies arise between the rentable and actual area of a space to be built. This clause is designed to address and rectify any differences, ensuring fair treatment for both landlords and tenants. Here, we will delve into the details of the New York Remeasurement Clause, its purpose, implementation, and different variations. The objective of the New York Remeasurement Clause is to establish a standard method for measuring and determining the rentable area of a space. It aims to define the square footage that will be used to calculate the rent, as well as any additional charges such as common area maintenance fees. By adhering to a set measurement protocol, this clause eliminates uncertainties and disputes that may arise from variations in measurement methodologies. In practice, the New York Remeasurement Clause typically involves hiring an accredited surveyor or architect to conduct a thorough measurement of the space. Taking into account various factors such as external walls, common areas, stairwells, and other shared elements, the surveyor will determine the true rentable area. This measurement is then used to recalculate the rent and related charges, ensuring accuracy and fairness. It is important to note that there are different types of the New York Remeasurement Clause. The most common variations include: 1. Remeasurement Clause with Tenant Recapture Provision: This type allows the tenant to recover any overpaid rent if the remeasurement reveals a smaller rentable area than previously agreed upon. 2. Remeasurement Clause with Co-Tenancy Provision: This provision allows the tenant to seek rent adjustments or lease termination if the remeasurement reveals a significant reduction in the overall size of the property. The tenant can argue that the diminished space no longer meets their business needs as initially anticipated. 3. Remeasurement Clause with Base Year Expense Stop Provision: In this case, the remeasurement triggers a recalculation of the base year expense stop, which is the amount the tenant is responsible for paying towards common area maintenance fees. If the remeasurement reveals a smaller rentable area than initially assumed, the tenant's expense obligations may be reduced accordingly. In conclusion, the New York Remeasurement Clause is a crucial component of commercial real estate leases in situations where there are disparities between the rentable and actual area of a space to be built. It ensures fairness in rent calculations and related charges by employing a standardized measurement protocol. The different variations of this clause cater to various tenant concerns such as rent recapture, co-tenancy provisions, and base year expense adjustments.
The New York Remeasurement Clause is a key element in commercial real estate leases, specifically used when discrepancies arise between the rentable and actual area of a space to be built. This clause is designed to address and rectify any differences, ensuring fair treatment for both landlords and tenants. Here, we will delve into the details of the New York Remeasurement Clause, its purpose, implementation, and different variations. The objective of the New York Remeasurement Clause is to establish a standard method for measuring and determining the rentable area of a space. It aims to define the square footage that will be used to calculate the rent, as well as any additional charges such as common area maintenance fees. By adhering to a set measurement protocol, this clause eliminates uncertainties and disputes that may arise from variations in measurement methodologies. In practice, the New York Remeasurement Clause typically involves hiring an accredited surveyor or architect to conduct a thorough measurement of the space. Taking into account various factors such as external walls, common areas, stairwells, and other shared elements, the surveyor will determine the true rentable area. This measurement is then used to recalculate the rent and related charges, ensuring accuracy and fairness. It is important to note that there are different types of the New York Remeasurement Clause. The most common variations include: 1. Remeasurement Clause with Tenant Recapture Provision: This type allows the tenant to recover any overpaid rent if the remeasurement reveals a smaller rentable area than previously agreed upon. 2. Remeasurement Clause with Co-Tenancy Provision: This provision allows the tenant to seek rent adjustments or lease termination if the remeasurement reveals a significant reduction in the overall size of the property. The tenant can argue that the diminished space no longer meets their business needs as initially anticipated. 3. Remeasurement Clause with Base Year Expense Stop Provision: In this case, the remeasurement triggers a recalculation of the base year expense stop, which is the amount the tenant is responsible for paying towards common area maintenance fees. If the remeasurement reveals a smaller rentable area than initially assumed, the tenant's expense obligations may be reduced accordingly. In conclusion, the New York Remeasurement Clause is a crucial component of commercial real estate leases in situations where there are disparities between the rentable and actual area of a space to be built. It ensures fairness in rent calculations and related charges by employing a standardized measurement protocol. The different variations of this clause cater to various tenant concerns such as rent recapture, co-tenancy provisions, and base year expense adjustments.
