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 Lima Arizona Remeasurement Clause is a legal provision used when there are discrepancies or variations between the rentable and actual area of a space that is being built or leased. This clause is commonly included in commercial real estate contracts to establish a fair and accurate basis for determining rental payments or lease terms. When variances exist between the rentable and actual area of a space to be built in Lima, Arizona, this clause allows for the remeasurement of the space to ensure that both the landlord and tenant are on the same page regarding the usable area. By providing a framework for determining the precise area of the space, the remeasurement clause eliminates potential disputes and ensures fair rental calculations. There can be different types of Lima Arizona Remeasurement Clauses used when discrepancies arise between the rentable and actual area. Some common types include: 1. Gross-Up Clause: This clause is utilized to adjust the rentable area by adding a percentage for common areas shared by multiple tenants like corridors, lobbies, stairwells, or restrooms. It aims to distribute the maintenance and operational costs of these shared spaces among all tenants fairly. 2. Loss Factor Clause: This clause accounts for the loss of usable area due to structural elements, such as columns, mechanical shafts, or storage areas. It allows for a reduction in the rentable area to reflect the actual usable space available to the tenant. 3. Load Factor Clause: This clause considers the additional space required to accommodate amenities and services essential for the space's functionality, such as elevators, HVAC systems, or utility rooms. It adjusts the rentable area by adding a percentage to represent the shared infrastructure. 4. Exclusion Clause: This clause is used when certain areas of the building or space are not included in the rentable area calculation. These exclusions may include inaccessible areas, balconies, or rooftop spaces that cannot be used by the tenant. These various types of Lima Arizona Remeasurement Clauses ensure that both parties have a clear understanding of the actual usable area and the corresponding rent calculations. By addressing potential discrepancies between the rentable and actual area, these clauses promote fairness and transparency in commercial real estate leasing transactions.The Lima Arizona Remeasurement Clause is a legal provision used when there are discrepancies or variations between the rentable and actual area of a space that is being built or leased. This clause is commonly included in commercial real estate contracts to establish a fair and accurate basis for determining rental payments or lease terms. When variances exist between the rentable and actual area of a space to be built in Lima, Arizona, this clause allows for the remeasurement of the space to ensure that both the landlord and tenant are on the same page regarding the usable area. By providing a framework for determining the precise area of the space, the remeasurement clause eliminates potential disputes and ensures fair rental calculations. There can be different types of Lima Arizona Remeasurement Clauses used when discrepancies arise between the rentable and actual area. Some common types include: 1. Gross-Up Clause: This clause is utilized to adjust the rentable area by adding a percentage for common areas shared by multiple tenants like corridors, lobbies, stairwells, or restrooms. It aims to distribute the maintenance and operational costs of these shared spaces among all tenants fairly. 2. Loss Factor Clause: This clause accounts for the loss of usable area due to structural elements, such as columns, mechanical shafts, or storage areas. It allows for a reduction in the rentable area to reflect the actual usable space available to the tenant. 3. Load Factor Clause: This clause considers the additional space required to accommodate amenities and services essential for the space's functionality, such as elevators, HVAC systems, or utility rooms. It adjusts the rentable area by adding a percentage to represent the shared infrastructure. 4. Exclusion Clause: This clause is used when certain areas of the building or space are not included in the rentable area calculation. These exclusions may include inaccessible areas, balconies, or rooftop spaces that cannot be used by the tenant. These various types of Lima Arizona Remeasurement Clauses ensure that both parties have a clear understanding of the actual usable area and the corresponding rent calculations. By addressing potential discrepancies between the rentable and actual area, these clauses promote fairness and transparency in commercial real estate leasing transactions.
