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 Collin Texas Remeasurement Clause is a crucial component in property leases, specifically used when there are discrepancies between the rentable area and the actual area of a space to be built. This clause ensures fairness and transparency in lease agreements by addressing any variances that may arise during construction or renovations. When it comes to the types of Collin Texas Remeasurement Clauses used in such scenarios, there are primarily two commonly encountered ones: 1. Rentable to Usable Area Remeasurement Clause: This type of clause focuses on the difference between the rentable area, which includes the tenant's actual usable space and a proportionate share of common areas, and the actual usable area received by the tenant. In cases where the actual usable area falls significantly short of the rentable area, the tenant may be entitled to adjustments in the lease terms to reflect the accurate usable area. This type of clause promotes fairness between landlords and tenants, guaranteeing that tenants pay only for the space they can effectively utilize. 2. Gross-up Remeasurement Clause: The gross-up remeasurement clause comes into play when the rentable area includes a certain proportion of common areas, such as hallways, lobbies, or restrooms. In this case, the clause ensures that the tenant is not paying for common areas twice—once as part of the rentable area and again as their proportionate share in the common area maintenance charges. By adjusting the lease terms to account for the accurate proportion of common areas, this clause eliminates the possibility of double payment for shared spaces. In conclusion, the Collin Texas Remeasurement Clause is an essential contractual provision used to address discrepancies between the rentable and actual area of a space to be built. By incorporating either the Rentable to Usable Area Remeasurement or the Gross-up Remeasurement Clause, landlords and tenants can maintain fairness, accurately represent the space being leased, and ensure that the lease terms align with the actual usable area provided to the tenant.The Collin Texas Remeasurement Clause is a crucial component in property leases, specifically used when there are discrepancies between the rentable area and the actual area of a space to be built. This clause ensures fairness and transparency in lease agreements by addressing any variances that may arise during construction or renovations. When it comes to the types of Collin Texas Remeasurement Clauses used in such scenarios, there are primarily two commonly encountered ones: 1. Rentable to Usable Area Remeasurement Clause: This type of clause focuses on the difference between the rentable area, which includes the tenant's actual usable space and a proportionate share of common areas, and the actual usable area received by the tenant. In cases where the actual usable area falls significantly short of the rentable area, the tenant may be entitled to adjustments in the lease terms to reflect the accurate usable area. This type of clause promotes fairness between landlords and tenants, guaranteeing that tenants pay only for the space they can effectively utilize. 2. Gross-up Remeasurement Clause: The gross-up remeasurement clause comes into play when the rentable area includes a certain proportion of common areas, such as hallways, lobbies, or restrooms. In this case, the clause ensures that the tenant is not paying for common areas twice—once as part of the rentable area and again as their proportionate share in the common area maintenance charges. By adjusting the lease terms to account for the accurate proportion of common areas, this clause eliminates the possibility of double payment for shared spaces. In conclusion, the Collin Texas Remeasurement Clause is an essential contractual provision used to address discrepancies between the rentable and actual area of a space to be built. By incorporating either the Rentable to Usable Area Remeasurement or the Gross-up Remeasurement Clause, landlords and tenants can maintain fairness, accurately represent the space being leased, and ensure that the lease terms align with the actual usable area provided to the tenant.
