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.
Philadelphia, Pennsylvania is a vibrant city located in the Northeastern United States. Known for its rich history, iconic landmarks, and diverse culture, Philadelphia has become a popular destination for tourists and residents alike. The city is filled with numerous historical sites such as the Liberty Bell, Independence Hall, and the Philadelphia Museum of Art. In the real estate industry, a remeasurement clause is often used in Philadelphia to address differences between the rentable area, which is the space that can be leased out, and the actual area of a space to be built. This clause ensures that both the landlord and the tenant have a clear understanding of the space they are leasing and its proper measurement. There are different types of remeasurement clauses used in Philadelphia, each serving a specific purpose: 1. Gross-Up Remeasurement Clause: This type of clause is used to account for a specific percentage of common areas, such as hallways, elevators, and lobbies, that are shared among all tenants. The gross-up clause adds these common areas to the rentable area, allowing tenants to accurately assess their space requirements. 2. Base-Year Remeasurement Clause: A base-year remeasurement clause is commonly used in leases with long-term agreements. This clause establishes a base year against which future measurements will be compared. If the actual area of the space changes significantly, the rent will be adjusted accordingly, based on the initial base year measurements. 3. Tenant Improvement Allowance Remeasurement Clause: This clause applies when a tenant wishes to make improvements or alterations to the leased space. The remeasurement clause will be triggered to accurately determine both the rentable area before and after the proposed improvements. This ensures that the tenant's improvements are properly accounted for in the lease agreement. Overall, the use of remeasurement clauses in Philadelphia's real estate industry is crucial for maintaining transparency and fairness between tenants and landlords. By addressing any variances between the rentable and actual area of a space to be built, these clauses help establish clear guidelines and prevent any disputes that may arise during the leasing process.Philadelphia, Pennsylvania is a vibrant city located in the Northeastern United States. Known for its rich history, iconic landmarks, and diverse culture, Philadelphia has become a popular destination for tourists and residents alike. The city is filled with numerous historical sites such as the Liberty Bell, Independence Hall, and the Philadelphia Museum of Art. In the real estate industry, a remeasurement clause is often used in Philadelphia to address differences between the rentable area, which is the space that can be leased out, and the actual area of a space to be built. This clause ensures that both the landlord and the tenant have a clear understanding of the space they are leasing and its proper measurement. There are different types of remeasurement clauses used in Philadelphia, each serving a specific purpose: 1. Gross-Up Remeasurement Clause: This type of clause is used to account for a specific percentage of common areas, such as hallways, elevators, and lobbies, that are shared among all tenants. The gross-up clause adds these common areas to the rentable area, allowing tenants to accurately assess their space requirements. 2. Base-Year Remeasurement Clause: A base-year remeasurement clause is commonly used in leases with long-term agreements. This clause establishes a base year against which future measurements will be compared. If the actual area of the space changes significantly, the rent will be adjusted accordingly, based on the initial base year measurements. 3. Tenant Improvement Allowance Remeasurement Clause: This clause applies when a tenant wishes to make improvements or alterations to the leased space. The remeasurement clause will be triggered to accurately determine both the rentable area before and after the proposed improvements. This ensures that the tenant's improvements are properly accounted for in the lease agreement. Overall, the use of remeasurement clauses in Philadelphia's real estate industry is crucial for maintaining transparency and fairness between tenants and landlords. By addressing any variances between the rentable and actual area of a space to be built, these clauses help establish clear guidelines and prevent any disputes that may arise during the leasing process.
