Building Better Leases Series – Premises: Letting

Building Better Leases

Letting refers to renting out the Premises to the tenant.

Commercial rents are quoted on a per foot basis. This allows lease rates to be compared on an “apples to apples” scale because every property is different. It’s important to keep in mind that the concept of “actual” square footage is a little indefinite; different standards for measuring buildings will produce different results. In other words, the square footage of a building that is quoted by an owner or broker may not be the “actual” square footage of the building. Furthermore, it’s not uncommon for the square footage on the floor plans to be different than the actual square footage of a building.

Therefore, this section of the Lease focuses on the idea that the Base Rent is not to be considered the result of a square footage/rent per square foot calculation and that the Base Rent will not be increased or decreased should the Lessee discover that the actual size of the building is different from the estimate.