This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
Michigan Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share
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FAQ
In general, the tenant's proportionate share is determined by taking the building's rentable square footage and dividing it by the tenant's rentable square footage. Local industry customs usually provide the landlord with the guiding principles for: Measuring the building.
Your pro rata share of household operating expenses is the average monthly household operating expenses (based on a reasonable estimate if exact figures are not available) divided by the number of people in the household, regardless of age.
More Definitions of Tenant's Proportion Tenant's Proportion is 18.562% and means the sum derived by dividing the Rentable Area of the Premises by the Rentable Area of the Building and multiplying by one hundred (100).
Proportionate Share If the Premises are a part of a multiple tenancy complex, the responsibility of the Lessee for costs are determined by taking a percentage of the total cost of the expenses based upon the rentable floor space in said complex occupied by the Lessee.
Pro rata is a defined portion in relation to the entirety of an item. Instead of getting all of the items, someone can get a pro rata share, a proportional offering based on how much they are entitled to. For example, if I own 10% of a building, I may expect a pro rata share of 10% of the building's rental income.
