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 Phoenix Arizona Remeasurement Clause is a legal provision used in commercial real estate lease agreements when there are discrepancies between the rentable area and the actual area of a space to be built. This clause helps ensure fairness and accuracy in rent calculation by allowing for adjustments based on the actual square footage of the premises. When variances exist between the rentable and actual area of a space to be built in Phoenix, Arizona, several types of Remeasurement Clauses might be used. Some common ones include: 1. Standard Remeasurement Clause: This is the most basic type of clause, where the landlord and tenant agree to measure the premises to determine the actual rentable area accurately. If discrepancies are found, the lease will specify whether adjustments will be made, such as increasing or decreasing the rent accordingly. 2. BOMB Remeasurement Clause: BOMB (Building Owners and Managers Association) is a widely recognized and respected organization that provides guidelines for measuring rentable areas in commercial buildings. A BOMB Remeasurement Clause would involve using the BOMB standards to measure the space and determine any variances. 3. Permitted Variances Remeasurement Clause: In some cases, landlords and tenants may agree to allow for a certain percentage of variance between the rentable and actual area. This clause defines the acceptable range of variances and outlines how rent adjustments would be calculated within the permitted limits. 4. Shared Costs Remeasurement Clause: In situations where the remeasurement reveals a significant variance, this type of clause may prescribe how the costs of the remeasurement process will be shared between the landlord and the tenant. For example, the lease might stipulate that the requesting party covers all expenses if the variance is less than a certain threshold. 5. Contingent Remeasurement Clause: This type of clause is used when the rentable area of the space to be built is uncertain, such as when construction is not yet completed. It allows for a remeasurement to take place once the construction is finished, ensuring that the actual area is calculated accurately, and rent adjustments are made accordingly. To ensure a fair and transparent lease agreement, landlords and tenants in Phoenix, Arizona, often consider incorporating these different types of Remeasurement Clauses to address any variances that may arise between the rentable and actual area of a space to be built. It is essential for both parties to thoroughly review and understand the provisions within the lease agreement before finalizing and committing to any terms.The Phoenix Arizona Remeasurement Clause is a legal provision used in commercial real estate lease agreements when there are discrepancies between the rentable area and the actual area of a space to be built. This clause helps ensure fairness and accuracy in rent calculation by allowing for adjustments based on the actual square footage of the premises. When variances exist between the rentable and actual area of a space to be built in Phoenix, Arizona, several types of Remeasurement Clauses might be used. Some common ones include: 1. Standard Remeasurement Clause: This is the most basic type of clause, where the landlord and tenant agree to measure the premises to determine the actual rentable area accurately. If discrepancies are found, the lease will specify whether adjustments will be made, such as increasing or decreasing the rent accordingly. 2. BOMB Remeasurement Clause: BOMB (Building Owners and Managers Association) is a widely recognized and respected organization that provides guidelines for measuring rentable areas in commercial buildings. A BOMB Remeasurement Clause would involve using the BOMB standards to measure the space and determine any variances. 3. Permitted Variances Remeasurement Clause: In some cases, landlords and tenants may agree to allow for a certain percentage of variance between the rentable and actual area. This clause defines the acceptable range of variances and outlines how rent adjustments would be calculated within the permitted limits. 4. Shared Costs Remeasurement Clause: In situations where the remeasurement reveals a significant variance, this type of clause may prescribe how the costs of the remeasurement process will be shared between the landlord and the tenant. For example, the lease might stipulate that the requesting party covers all expenses if the variance is less than a certain threshold. 5. Contingent Remeasurement Clause: This type of clause is used when the rentable area of the space to be built is uncertain, such as when construction is not yet completed. It allows for a remeasurement to take place once the construction is finished, ensuring that the actual area is calculated accurately, and rent adjustments are made accordingly. To ensure a fair and transparent lease agreement, landlords and tenants in Phoenix, Arizona, often consider incorporating these different types of Remeasurement Clauses to address any variances that may arise between the rentable and actual area of a space to be built. It is essential for both parties to thoroughly review and understand the provisions within the lease agreement before finalizing and committing to any terms.
