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 Oregon Remeasurement Clause is an essential provision used in commercial real estate leases to address variances between the rentable and actual area of a space being built. This clause ensures transparency and fairness for both landlords and tenants by defining the methods and protocols for measuring and remeasuring the premises. When there are discrepancies between the rentable and actual area of a space to be built, this clause allows for adjustments to be made to the rent and other lease terms. Landlords often include this provision to safeguard their interests and maximize the rental value of their properties, while tenants benefit from the assurance of paying for only the space they occupy. Various types of Oregon Remeasurement Clauses can be applied to address different scenarios and situations, including: 1. Permitted Variance: This type of clause allows for a specific percentage of variance, typically ranging from 5% to 10%, between the rentable and actual area. If the variance falls within this permitted range, no adjustments are made to the lease terms. 2. Tenant's Remedies: In cases where the variance exceeds the permitted limit, this clause provides tenants with different remedies to ensure fair compensation. Options may include adjusting the rent proportionally to the variance, releasing the excess space, or even terminating the lease agreement under specific conditions. 3. Remeasurement Procedures: These clauses outline the detailed methods, standards, and practices being followed when measuring or remeasuring the premises. They may include regulations from organizations such as BOMB (Building Owners and Managers Association) or specify the involvement of accredited professionals to ensure accuracy and consistency. 4. Formal Dispute Resolution: To address potential disputes regarding variance measurements, some Remeasurement Clauses may include provisions for formal dispute resolution processes. These processes may involve third-party experts or arbitrators, allowing parties to resolve conflicts objectively and efficiently. It is crucial for both landlords and tenants to negotiate and include the Oregon Remeasurement Clause in their lease agreements to establish a clear understanding of how rentable and actual areas will be determined and any financial implications associated with variances. Professional advice from real estate attorneys or agents can assist in drafting and incorporating an appropriate Remeasurement Clause that aligns with the specific circumstances of the lease agreement.
