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 Michigan Remeasurement Clause is a legal provision used when discrepancies arise between the rentable area and the actual area of a space being built or leased. This clause ensures fairness and accuracy in calculating rent and occupancy costs by taking into account the exact dimensions of the leased space. By including this clause in a lease agreement, both landlords and tenants can protect their rights and avoid potential disputes related to area variations. The Michigan Remeasurement Clause is particularly beneficial in situations where changes in construction, design, or spatial utilization occur during the build-out or leasing process. It allows for precise measurements to be taken after the completion of construction or at regular intervals during the lease term. This ensures that the agreed-upon rent and expenses are in line with the actual size of the space, which can prevent either party from shouldering an unfair financial burden. Different types of Michigan Remeasurement Clauses may exist depending on the specific circumstances and needs of the parties involved. Some variations include: 1. Initial Measurement Remeasurement Clause: This type of clause allows for a remeasurement of the space before the lease begins. It ensures that the rental rates and expenses are accurately based on the initial size of the space, taking into consideration any alterations made during the construction phase. 2. Periodic Remeasurement Clause: In leases with long terms, it's common to include a clause that allows for remeasurement every few years or at specific intervals. This type of clause provides an opportunity to adjust the rent and expenses in line with any changes in the actual size of the space, ensuring fairness for both parties. 3. Remodeling/Expansion Remeasurement Clause: In cases where the leased space undergoes significant remodeling or expansion, this clause allows for a remeasurement to account for the additional area incorporated. It ensures that the rental rates and expenses accurately reflect the increased size of the space. It is important to have experienced legal professionals draft and include the appropriate type of Michigan Remeasurement Clause in a lease agreement, considering the specific needs and circumstances of the parties involved. Such a clause can preserve transparency and prevent potential conflicts that may arise from differences between the rentable and actual area of a space.
