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 Texas Remeasurement Clause is a legal provision utilized when there are differences or variances between the rentable area and actual area of a space to be built in Texas. This clause helps to establish fair and accurate measurements for the purpose of determining lease agreements, rental charges, and tenant obligations within commercial real estate developments. The purpose of the Texas Remeasurement Clause is to ensure that both landlords and tenants have a clear understanding of the actual usable area being leased and to avoid any disputes or discrepancies that may arise due to inaccurate or misleading measurements. It helps to maintain transparency and fairness in lease negotiations by addressing potential variations between the rentable area and the actual usable space. The clause typically outlines the process and criteria for remeasurement in case differences exist. Common reasons for these variations can include design changes during construction or discrepancies in measurements taken by different surveyors or parties involved. In Texas, there are two main types of remeasurement clauses used when variances exist between the rentable and actual area of a space to be built: 1. Permitted Variance Remeasurement Clause: This clause allows for a limited variance between the rentable area and the actual area. It specifies a maximum tolerance level or percentage of variance that won't trigger any adjustment or renegotiation of the lease terms. However, if the variance exceeds the permitted tolerance, the clause provides a mechanism for remeasurement and potential adjustments to rental charges or other lease terms. 2. Full Remeasurement Clause: This clause allows for a complete remeasurement of the space to be built. If significant differences in area are identified, this clause gives both parties the opportunity to renegotiate the lease terms based on the recalculated measurements. This may result in adjustments to rental rates, tenant obligations, or other lease provisions. It is crucial for landlords and tenants to carefully consider and negotiate the specific details of the Texas Remeasurement Clause to ensure they are protected and the lease terms accurately reflect the usable area of the space. Seeking legal expertise during the negotiation and drafting of lease agreements can provide valuable guidance and help avoid future disputes related to rentable and actual area variances. In summary, the Texas Remeasurement Clause serves as a vital tool in commercial real estate lease agreements, providing a framework for addressing differences or variances between the rentable and actual area of a space to be built. By adopting this clause, both landlords and tenants can achieve fair and transparent lease terms that accurately reflect the usable area and avoid potential conflicts or disputes.
