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 New Hampshire Remeasurement Clause is a crucial legal provision that is utilized when there are variations between the rentable area and the actual area of a space under construction or development. It aims to regulate and resolve any discrepancies that may arise in determining the rental rates for such spaces. The Remeasurement Clause is particularly applicable in situations where the landlord and tenant mutually agree upon a specific rentable area, but subsequent measurements indicate a disparity between the agreed-upon area and the actual area upon completion. This clause helps establish a fair and accurate baseline for calculating rental costs. When it comes to the different types of New Hampshire Remeasurement Clauses used when variances exist between rentable and actual space areas, there are primarily two significant variations: 1. Incremental Remeasurement Clause: Under this type, adjustments in rental rates are made in proportion to the extent of variance between the rentable area initially agreed upon and the actual area determined upon completion. For example, if the actual completed area is 10% smaller than the initial rentable area, the rent would be adjusted accordingly to reflect this difference. 2. Fixed Adjustment Remeasurement Clause: Unlike the incremental clause, this type involves a predetermined fixed adjustment rate that is applied to the rental rates in the event of any variance in space area. This fixed adjustment may be based on a per-square-foot rate or a pre-agreed percentage. This clause provides more certainty and predictability for both parties involved. In New Hampshire, both tenants and landlords need to carefully review and understand the terms and implications of the Remeasurement Clause before entering into lease agreements. It is advisable to seek legal counsel to ensure that all parties are adequately protected and informed about their rights and obligations. Overall, the New Hampshire Remeasurement Clause plays a vital role in ensuring fairness and accuracy in determining rental rates when there are disparities between the initially agreed-upon rentable area and the actual area of a space being constructed. By using the appropriate type of remeasurement clause, landlords and tenants can effectively address any discrepancies and avoid potential conflicts during the lease term.
