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 Alaska Remeasurement Clause is a contractual provision used in real estate agreements when there are discrepancies between the rentable area and the actual area of a space being constructed. This clause is primarily employed to accurately adjust rent calculations and allocations based on the accurate measurement of the space. The purpose of the Alaska Remeasurement Clause is to address any variations, deviations, or variances between the anticipated rentable area and the actual area once the construction is completed. These discrepancies can occur due to changes in design, construction errors, or unforeseen circumstances during the construction process. By incorporating this clause, both the landlord and tenant can ensure fairness and transparency in lease agreements. When activating the Alaska Remeasurement Clause, it is common to hire a third-party expert, such as a licensed surveyor or architect, to conduct a detailed measurement assessment of the completed space. This assessment provides an accurate and impartial measurement of the actual area and forms the basis for adjusting the rentable area calculation. The expert evaluates factors such as wall thickness, common areas, vertical penetrations, storage areas, and any other elements that may affect the total area. Once the remeasurement is completed, various scenarios can arise, each leading to different types of Alaska Remeasurement Clauses. Here are a few examples: 1. Fixed Percentage Increase/Decrease: In this scenario, the remeasurement reveals a consistent percentage increase or decrease in the rentable area compared to the anticipated area. The Alaska Remeasurement Clause may outline a fixed percentage adjustment to either increase or decrease the rent based on the variance discovered. 2. Proportional Adjustment: If the remeasurement shows discrepancies across different areas of the space, the Alaska Remeasurement Clause may propose a proportional adjustment. This involves adjusting the rentable area and subsequent rent calculations based on the variation in each specific part of the space. 3. Negotiated Agreement: In situations where the remeasurement reveals substantial variations, the parties involved may choose to negotiate an agreement that suits their mutual interests. This negotiation can result in a customized Alaska Remeasurement Clause tailored to the specific circumstances of the space. The Alaska Remeasurement Clause is crucial for avoiding disputes and ensuring fair lease agreements. By mandating accurate measurements of the actual area, both landlord and tenant can have confidence in the rent calculations and allocations, enhancing the overall transparency and effectiveness of the lease agreement.
