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 Hennepin Minnesota Remeasurement Clause is a legal provision used in real estate contracts when there are discrepancies between the rentable and actual area of a space to be built or leased. This clause is implemented to ensure fairness and accuracy in determining lease terms and rental payments, particularly in commercial or office spaces. The Hennepin Minnesota Remeasurement Clause can be triggered when a variance exists between the calculated rentable area and the actual usable area of a space. Rentable area refers to the total square footage of a space, including common areas such as hallways and restrooms, while usable area pertains to the actual space that the tenant can occupy and utilize. The purpose of this clause is to address any potential misunderstandings or disagreements regarding the size of the space specified in the lease agreement. It ensures that both the landlord and tenant are on the same page regarding the rentable and usable areas, enabling them to negotiate fair lease terms based on the actual square footage. In Hennepin County, specific types of the Remeasurement Clause include: 1. Base Building Measurement: This type of remeasurement clause refers to the measurement of the entire building space, including common areas, hallways, lobbies, and other shared spaces, to determine the total rentable area. It helps establish a baseline for all rental spaces within a building, ensuring consistency in lease agreements. 2. Tenant's Share Measurement: In some cases, the remeasurement clause may focus on determining the tenant's proportionate share of the rentable area within a building. This calculation is usually based on a percentage or fraction assigned to each tenant, reflecting their occupancy size relative to the entire building. 3. Gross-Up Provision: The gross-up provision is another aspect of the remeasurement clause that considers the inclusion of common area expenses in lease calculations. It allows the landlord to 'gross-up' the tenant's rentable area by a certain factor to account for common area usage, such as hallways or shared amenities. This ensures that tenants pay their fair share of overall building costs. Overall, the Hennepin Minnesota Remeasurement Clause plays a crucial role in providing clarity and fairness in lease agreements. It facilitates accurate rental calculations by addressing variances between rentable and actual area, allowing both landlords and tenants to negotiate terms based on the actual usable space.The Hennepin Minnesota Remeasurement Clause is a legal provision used in real estate contracts when there are discrepancies between the rentable and actual area of a space to be built or leased. This clause is implemented to ensure fairness and accuracy in determining lease terms and rental payments, particularly in commercial or office spaces. The Hennepin Minnesota Remeasurement Clause can be triggered when a variance exists between the calculated rentable area and the actual usable area of a space. Rentable area refers to the total square footage of a space, including common areas such as hallways and restrooms, while usable area pertains to the actual space that the tenant can occupy and utilize. The purpose of this clause is to address any potential misunderstandings or disagreements regarding the size of the space specified in the lease agreement. It ensures that both the landlord and tenant are on the same page regarding the rentable and usable areas, enabling them to negotiate fair lease terms based on the actual square footage. In Hennepin County, specific types of the Remeasurement Clause include: 1. Base Building Measurement: This type of remeasurement clause refers to the measurement of the entire building space, including common areas, hallways, lobbies, and other shared spaces, to determine the total rentable area. It helps establish a baseline for all rental spaces within a building, ensuring consistency in lease agreements. 2. Tenant's Share Measurement: In some cases, the remeasurement clause may focus on determining the tenant's proportionate share of the rentable area within a building. This calculation is usually based on a percentage or fraction assigned to each tenant, reflecting their occupancy size relative to the entire building. 3. Gross-Up Provision: The gross-up provision is another aspect of the remeasurement clause that considers the inclusion of common area expenses in lease calculations. It allows the landlord to 'gross-up' the tenant's rentable area by a certain factor to account for common area usage, such as hallways or shared amenities. This ensures that tenants pay their fair share of overall building costs. Overall, the Hennepin Minnesota Remeasurement Clause plays a crucial role in providing clarity and fairness in lease agreements. It facilitates accurate rental calculations by addressing variances between rentable and actual area, allowing both landlords and tenants to negotiate terms based on the actual usable space.
