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 South Dakota Remeasurement Clause is a legal provision used when discrepancies or variances exist between the rentable and actual area of a space to be built in the state of South Dakota. This clause ensures accuracy and fairness in determining the appropriate rentable area for leasing purposes. The purpose of the South Dakota Remeasurement Clause is to address situations where the actual usable area of a space differs from the initially estimated or agreed-upon rentable area. This can occur due to various factors such as construction errors, changes in building plans, or differences in measurement techniques. By incorporating the South Dakota Remeasurement Clause in lease agreements, both landlords and tenants can protect their interests. The clause outlines the process and criteria for reevaluating and adjusting the rentable area if significant variations are discovered after construction is complete. Different types of South Dakota Remeasurement Clauses used in cases of variances between rentable and actual area may include: 1. Reconciliation Clause: This type of clause allows for a reconciliation or adjustment of the rentable area based on the actual measurements taken after construction. It typically involves an agreement between the landlord and tenant to recalculate the square footage and resulting rent. 2. Arbitration Clause: In situations where there is a dispute regarding the variance between the rentable and actual area, an arbitration clause can be included. This clause outlines the process by which an impartial third party, the arbitrator, is hired to assess and determine the accurate rentable area. 3. Cost Sharing Clause: In some cases, when significant variances are found between the rentable and actual area, a cost sharing clause may be utilized. This clause requires the landlord and tenant to share the cost of remeasuring the space and potentially modifying the lease terms accordingly. It is essential for both landlords and tenants in South Dakota to consider including a South Dakota Remeasurement Clause in lease agreements when leasing a space to be built. This clause ensures transparency, accuracy, and fairness in determining the rentable area, benefiting both parties involved in the leasing process.
