This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
California Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share refers to a financial calculation used in the commercial real estate sector, specifically in California. This mechanism determines the proportional share of property taxes that tenants in a multi-tenant building will be responsible for. The California Measurement Representations include various measurements used to assess a tenant's share of the property taxes. These measurements typically comprise the tenant's leased area or square footage. This information is crucial in determining the accurate proportionate tax share of each tenant. Proportionate Share Adjustment is another component of this calculation. It considers factors such as the tenant's share of common areas, building amenities, and other shared spaces. This adjustment ensures that tenants are responsible for their fair share of property taxes based on the overall proportions of the leased area and common spaces. The adjustment may vary depending on lease agreements and the specific terms outlined. In California, there are three primary types of Measurement Representations and Proportionate Share Adjustment: 1. Gross Measurement: This type involves the total square footage of the tenant's leased area. It includes both the usable area within the tenant's space and a portion of the common areas shared with other tenants. The proportionate share adjustment is calculated based on this gross measurement. 2. Net Measurement: Net measurement represents the leased area within the tenant's space only, excluding any common areas. The proportionate share adjustment for net measurement is generally lower than gross measurement since it does not consider any shared spaces. 3. Modified Gross Measurement: This type combines aspects of both gross and net measurements. It includes the usable square footage of the tenant's leased area, similar to the net measurement. However, it also includes a proportionate share adjustment for certain common areas or amenities that are shared by tenants. The adjustment varies based on the specific terms of the lease agreement. It is important for landlords and tenants to carefully review lease agreements to understand the specific measurement representations and proportionate share adjustment applied in their respective situations. Proper understanding and transparency in these calculations are essential to ensure fair and accurate distribution of property tax responsibilities among tenants in a commercial building in California.
