This office lease provision describes the standard of measurement for usable area in office buildings recommended by building owners and managers associations.
Keywords: Arkansas provisions, measuring additional space, measuring option space, different types, detailed description Arkansas Provisions Used for Measuring Additional or Option Space: A Detailed Description Introduction: In Arkansas, there are specific provisions and guidelines in place to accurately measure additional or option space within various real estate properties. These provisions ensure that both tenants and landlords have a fair understanding of the usable space and help avoid any disputes or misunderstandings. This article provides a detailed description of the Arkansas provisions used for measuring additional or option space, including different types if applicable. 1. Gross Leasable Area (GLA): One commonly used provision in Arkansas for measuring additional or option space is the Gross Leasable Area (GLA). GLA refers to the total floor area that can be leased to a tenant, including all interior spaces. It encompasses both occupied and unoccupied areas, such as hallways, restrooms, and shared common areas. GLA is a vital metric for determining rent calculations and can play a crucial role in commercial leasing agreements. 2. Rentable Square Footage: Rentable Square Footage is another provision utilized for measuring additional or option space in Arkansas. It refers to the actual area that tenants can utilize and occupy within a property. This measurement excludes common areas and spaces that are beneficial to multiple tenants. Rentable Square Footage is pivotal for determining rental rates, tenant improvements, and maintenance costs. 3. Usable Square Footage: Arkansas provisions also consider Usable Square Footage while measuring additional or option space. This metric includes only the actual usable space within a property, typically designated for a specific tenant's exclusive use. It excludes shared areas, such as hallways, restrooms, and other common amenities. Usable Square Footage is highly relevant for accurately assessing space requirements for individual tenants. 4. Net Rentable Area: Net Rentable Area is yet another provision found in Arkansas regulations for measuring additional or option space. It is the actual area within a property that can be leased to tenants, excluding any common areas, such as corridors, lobbies, restrooms, and elevator shafts. Net Rentable Area focuses solely on the area that is exclusively available for tenants to utilize, determining the rent charged per square foot. 5. Building Efficiency Ratio: The Building Efficiency Ratio is a provision used in some cases to measure additional or option space. It defines the effectiveness of a building's usable space, considering the ratio between the net rentable area and the gross leasable area. This ratio helps assess how efficiently the property's space is utilized and is often used in commercial real estate evaluations. Conclusion: In Arkansas, several provisions are essential for accurately measuring additional or option space within real estate properties. These provisions include Gross Leasable Area (GLA), Rentable Square Footage, Usable Square Footage, Net Rentable Area, and possibly the Building Efficiency Ratio. Understanding these measurements plays a crucial role for both tenants and landlords, ensuring fair leasing agreements, calculating rents, and determining space requirements.
