This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
Delaware Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share is a crucial aspect of real estate transactions and leasing agreements in the state of Delaware. It primarily refers to the methodology used to determine and allocate the proportionate taxes of tenants within a commercial property. In Delaware, the measurement representations are established to ascertain the accurate measurement of the leased premises. This involves determining the exact square footage or area of the leased space based on standard measurement practices. It is essential for both landlords and tenants to have a clear understanding of the measurement representations as it directly impacts the proportionate tax share calculations. The Proportionate Share Adjustment of Tenants Proportionate Tax Share refers to the method of distributing the tax obligations between tenants in a commercial property. It ensures that each tenant pays a fair share of the property's tax burden proportionate to their leased space. The adjustment is made to reflect the actual size of the leased premises compared to the total square footage of the entire property. Different types of Delaware Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share can include: 1. Gross Leasable Area (GLA) Measurement: GLA measurement is commonly used to determine the area of a tenant's space. It includes the entire square footage within the leased premises, including the occupied space and any shared common areas. 2. Net Leasable Area (LA) Measurement: LA measurement excludes certain areas from the total square footage of the leased premises, such as shared corridors, restrooms, stairwells, and utility rooms. It provides a more accurate representation of the exclusive space a tenant occupies. 3. Common Area Factor (CAF) Adjustment: The CAF adjustment is applied to account for shared areas within a commercial property. It considers the percentage of common areas like lobbies, hallways, elevators, and parking lots to fairly allocate the tax burden. The CAF is multiplied by the tenant's leased area to determine their proportionate tax share. 4. Pro Rata Tax Share Calculation: This calculation divides the tenant's area by the total leasable area of the property to determine their proportionate tax share. A tenant's tax payment is then calculated by multiplying their proportionate tax share by the total property tax amount. It is important for landlords and tenants to meticulously review and negotiate the Delaware Measurement Representations and Proportionate Share Adjustment clauses within lease agreements. This ensures transparency and clarity regarding tax obligations and ultimately mitigates potential disputes and ambiguities.
