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.
Chicago, Illinois is a vibrant city known for its iconic architecture, bustling streets, and diverse culture. When it comes to real estate in Chicago, developers often encounter variations between the rentable and actual area of a space to be built. In order to address these discrepancies, a Remeasurement Clause is commonly used. The Chicago Illinois Remeasurement Clause is a provision typically included in commercial leases and construction contracts. This clause allows for adjustments to the rentable area of a space if there are differences between the initially anticipated area and the actual measured area post-construction. The purpose of this clause is to ensure fair rental rates by accurately reflecting the space's size. Understanding the importance of an accurate measurement, Chicago has specific guidelines and standards for the application of the Remeasurement Clause. These guidelines may include utilizing certified surveyors to measure floor areas, adhering to specific measurement methodologies such as BOMB (Building Owners and Managers Association) standards, or complying with local codes and regulations. Within the realm of Chicago Illinois Remeasurement Clauses, there are different types to consider: 1. Gross-up Clause: This type of clause allows the landlord to increase the rentable square footage while excluding certain areas such as common areas, hallways, and utility rooms. 2. Net Measurement Clause: In this case, the actual usable area, excluding common areas, is considered for rental calculations. This type of clause may be employed when the total usable space differs significantly from the rentable area. 3. Variable Rate Clause: This clause establishes a flexible rent structure based on the actual measured area. The rental rate can be adjusted according to the specific square footage. The Chicago Illinois Remeasurement Clause is an essential tool to ensure transparency and fairness in the commercial real estate market. By addressing variances between rentable and actual area, it helps establish accurate rental rates and promotes trust between landlords and tenants. In conclusion, when embarking on a real estate project in Chicago, developers and tenants should understand the significance of the Remeasurement Clause. Choosing the appropriate type of clause, whether it be a Gross-up, Net Measurement, or Variable Rate Clause, is crucial in order to accurately assess rental rates and maintain equitable leasing practices in the Windy City.Chicago, Illinois is a vibrant city known for its iconic architecture, bustling streets, and diverse culture. When it comes to real estate in Chicago, developers often encounter variations between the rentable and actual area of a space to be built. In order to address these discrepancies, a Remeasurement Clause is commonly used. The Chicago Illinois Remeasurement Clause is a provision typically included in commercial leases and construction contracts. This clause allows for adjustments to the rentable area of a space if there are differences between the initially anticipated area and the actual measured area post-construction. The purpose of this clause is to ensure fair rental rates by accurately reflecting the space's size. Understanding the importance of an accurate measurement, Chicago has specific guidelines and standards for the application of the Remeasurement Clause. These guidelines may include utilizing certified surveyors to measure floor areas, adhering to specific measurement methodologies such as BOMB (Building Owners and Managers Association) standards, or complying with local codes and regulations. Within the realm of Chicago Illinois Remeasurement Clauses, there are different types to consider: 1. Gross-up Clause: This type of clause allows the landlord to increase the rentable square footage while excluding certain areas such as common areas, hallways, and utility rooms. 2. Net Measurement Clause: In this case, the actual usable area, excluding common areas, is considered for rental calculations. This type of clause may be employed when the total usable space differs significantly from the rentable area. 3. Variable Rate Clause: This clause establishes a flexible rent structure based on the actual measured area. The rental rate can be adjusted according to the specific square footage. The Chicago Illinois Remeasurement Clause is an essential tool to ensure transparency and fairness in the commercial real estate market. By addressing variances between rentable and actual area, it helps establish accurate rental rates and promotes trust between landlords and tenants. In conclusion, when embarking on a real estate project in Chicago, developers and tenants should understand the significance of the Remeasurement Clause. Choosing the appropriate type of clause, whether it be a Gross-up, Net Measurement, or Variable Rate Clause, is crucial in order to accurately assess rental rates and maintain equitable leasing practices in the Windy City.
