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.
Montgomery, Maryland is a county located in the state of Maryland, United States. It encompasses various cities and townships, including the city of Rockville, the county seat. Montgomery County is known for its thriving business and commercial sectors, attracting both local and international companies. When it comes to commercial real estate, developers and tenants often encounter variations between the rentable area (also known as the leasable area) and the actual area of a space that is to be constructed or leased. To address these variances, Montgomery County utilizes a Remeasurement Clause as a standard practice, ensuring accurate measurements and fair calculations. This clause helps establish consistency and transparency in lease agreements, as it accounts for any differences between the initially projected rentable area and the actual area upon construction completion. There are a few different types of Montgomery Maryland Remeasurement Clauses that can be used when variances exist between the rentable and actual area of a space to be built, depending on the specific circumstances and agreements between parties involved. These may include: 1. Standard Remeasurement Clause: This type of clause is commonly used in lease agreements and allows for adjustments to the rentable area of a space based on precise measurements once the construction is finalized. It typically states that the rent will be adjusted proportionally according to the actual rentable area, ensuring fair rental pricing. 2. Gross-up Remeasurement Clause: In some cases, the remeasurement clause might include a gross-up provision. This provision accounts for common areas and shared spaces within a building that are included in the rentable area calculations. The gross-up factor aims to distribute these shared areas proportionally across individual leased spaces, ensuring consistent measurement standards. 3. Tenant Option Remeasurement Clause: This type of remeasurement clause grants tenants the option to remeasure the space, typically after a certain period, such as five or ten years. It enables tenants to assess if the rentable area stated in the initial lease agreement was accurate and renegotiate lease terms if significant variations are found. It is important for developers, landlords, and tenants in Montgomery County, Maryland to consider these remeasurement clauses to avoid discrepancies and potential conflicts in lease agreements. By using these standardized clauses, all parties involved can ensure fair and equitable rental arrangements based on accurate measurements of the rentable and actual area of a space to be built.Montgomery, Maryland is a county located in the state of Maryland, United States. It encompasses various cities and townships, including the city of Rockville, the county seat. Montgomery County is known for its thriving business and commercial sectors, attracting both local and international companies. When it comes to commercial real estate, developers and tenants often encounter variations between the rentable area (also known as the leasable area) and the actual area of a space that is to be constructed or leased. To address these variances, Montgomery County utilizes a Remeasurement Clause as a standard practice, ensuring accurate measurements and fair calculations. This clause helps establish consistency and transparency in lease agreements, as it accounts for any differences between the initially projected rentable area and the actual area upon construction completion. There are a few different types of Montgomery Maryland Remeasurement Clauses that can be used when variances exist between the rentable and actual area of a space to be built, depending on the specific circumstances and agreements between parties involved. These may include: 1. Standard Remeasurement Clause: This type of clause is commonly used in lease agreements and allows for adjustments to the rentable area of a space based on precise measurements once the construction is finalized. It typically states that the rent will be adjusted proportionally according to the actual rentable area, ensuring fair rental pricing. 2. Gross-up Remeasurement Clause: In some cases, the remeasurement clause might include a gross-up provision. This provision accounts for common areas and shared spaces within a building that are included in the rentable area calculations. The gross-up factor aims to distribute these shared areas proportionally across individual leased spaces, ensuring consistent measurement standards. 3. Tenant Option Remeasurement Clause: This type of remeasurement clause grants tenants the option to remeasure the space, typically after a certain period, such as five or ten years. It enables tenants to assess if the rentable area stated in the initial lease agreement was accurate and renegotiate lease terms if significant variations are found. It is important for developers, landlords, and tenants in Montgomery County, Maryland to consider these remeasurement clauses to avoid discrepancies and potential conflicts in lease agreements. By using these standardized clauses, all parties involved can ensure fair and equitable rental arrangements based on accurate measurements of the rentable and actual area of a space to be built.
