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.
Oregon Remeasurement Clause Used When Variances Exist Between the Rentable and Actual Area of a Space to be Built
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Option to expand is the option to make an investment or undertake a project in the future to expand the business operations (a fast food chain considers opening new restaurants). Option to abandon is the option to cease a project or an asset to realize its salvage value (a manufacturer can opt to sell old equipment).
In terms of commercial real estate, expansion options provide tenants with the choice to add more space to their rented premises. Typically, this would apply to an office space or retail location where the tenants seek to expand into an adjoining space.
A percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. It is a term used in commercial real estate.
EXPANSION REAL ESTATE means and refer to the Additional Real Estate and any other real estate that is adjoining or adjacent to the Additional Real Estate or the Original Real Estate or to any street right-of-way adjoining or adjacent to the Additional Real Estate or the Original Real Estate.
What Are Expansion Clauses? An expansion clause is something that can be negotiated into a commercial real estate lease that allows the tenant guaranteed or preferential rights to expand within the building or portfolio from which they are leasing.
