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 Puerto Rico Remeasurement Clause is a contractual provision used in real estate agreements when there are discrepancies between the rentable and actual area of a space to be built. This clause is meant to address any potential variations in the size of the space, ensuring fair and accurate rent calculations. By including this clause, both parties can protect their interests and avoid any disputes regarding the rentable area. There are different types of Puerto Rico Remeasurement Clauses used when variances exist between the rentable and actual area of a space to be built. Let's explore a few: 1. Fixed Percentage Clause: This type of clause specifies a predetermined percentage that will be added or deducted from the rent based on the difference between the rentable and actual area. For example, if the actual area is smaller than the rentable area, the tenant may pay a reduced rent based on the percentage agreed upon. 2. Market Value Adjustment Clause: This clause allows for rent adjustments based on the market value of the space, considering the variance between the rentable and actual area. The market value is determined by a professional appraisal or agreed upon by both parties. 3. Abatement Period Clause: In some cases, when significant variations exist between the rentable and actual area, the Puerto Rico Remeasurement Clause may include an abatement period. During this period, the tenant may be entitled to a rent reduction or rent-free period until the space is reconfigured to match the rentable area. 4. Square Footage Adjustment Clause: This clause allows for adjustments in the rent calculation based on the square footage variance, ensuring that the tenant pays a fair amount relative to the actual area occupied. It's important to note that the specific type and details of the Puerto Rico Remeasurement Clause may vary depending on the agreement between the parties involved. These clauses aim to establish a fair and transparent process to address any variations between the rentable and actual area, providing clarity and protection for both tenants and landlords in Puerto Rico's real estate market.
