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.
Nebraska Remeasurement Clause Used When Variances Exist Between the Rentable and Actual Area of a Space to be Built In commercial real estate, accurately determining the rentable area of a space is crucial for both landlords and tenants. However, it is not uncommon for discrepancies to arise between the rentable area initially agreed upon and the actual area upon completion of construction. To address this issue, a Nebraska Remeasurement Clause can be used. This clause allows for the adjustment of rent and lease terms when such variances exist. The Nebraska Remeasurement Clause is typically included in lease agreements for spaces that are still under development or construction. It helps protect both parties by ensuring that they are accurately paying or receiving rent based on the actual area of the space rather than the originally estimated rentable area. When discrepancies arise between the rentable and actual area of a space in Nebraska, there are different types of Remeasurement Clauses that can be used, including: 1. The Prorate Remeasurement Clause: This type of clause requires the rent to be adjusted proportionally based on the percentage of variance between the rentable and actual area. For example, if the actual area is 10% smaller than the rentable area, the rent will be adjusted accordingly. 2. The Equalization Remeasurement Clause: In this case, the rent is adjusted to ensure that both parties are paying or receiving rent based on the actual area of their respective spaces. If one tenant's space is larger than initially estimated, their rent will increase, while if their space is smaller, their rent will decrease. 3. The Per Square Foot Remeasurement Clause: With this clause, the rent adjustment is calculated based on the difference per square foot. For example, if the actual area is 100 square feet smaller than the rentable area, and the rent is $10 per square foot, the adjustment will equal $1,000 (100 square feet x $10 per square foot). It is important for both landlords and tenants to carefully review and negotiate the terms of the Nebraska Remeasurement Clause before signing a lease agreement. This will ensure that they are protected in the event of discrepancies between the rentable and actual area. Consulting with a real estate attorney or experienced commercial real estate agent can be helpful in navigating the complexities of this clause and ensuring a fair resolution for all parties involved. In conclusion, the Nebraska Remeasurement Clause is a crucial component of lease agreements when there are variations between the rentable and actual area of a space to be built. By incorporating specific clauses to address these variances, landlords and tenants can maintain fair and transparent lease terms based on the actual area of the space.
