[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.19.17″ text_font=”Arial||||||||” text_font_size=”20px” text_orientation=”justified”]<\/p>\n
In the management of a non-residential lease, the rentable area of \u200b\u200ba leased premises as well as the total rentable area of \u200b\u200bthe building in which the leased premises are located, are decisive measures that have a major impact on the amount of rent payable by a tenant. These measures will not only have an impact on the base rent but also on the additional rent payable by the occupant.<\/p>\n
It is easy to understand that the base rent, which usually represents a fixed rent per square foot multiplied by the area of \u200b\u200bthe leased premises, is directly impacted by the measurement of \u200b\u200bthe leased premises. For example, if a lease provides a rental rate of $ 10 per square foot per year and the area of \u200b\u200bthe leased space is 10,000 square feet, the annual base rent will be $ 100,000.<\/p>\n
As for the additional rent charged to the tenant, it normally consists of that tenant’s proportionate share<\/u> of the operating expenses and property taxes of the building in which the leased premises are located. The proportionate share<\/u> represents a % or a fraction, the numerator of which is the leasable area of \u200b\u200bthe leased premises and the denominator of which is the total leasable area of \u200b\u200bthe building. For example, if the leasable area of \u200b\u200bthe leased premises is 10,000 square feet and the total leasable area of \u200b\u200bthe building is 200,000 square feet, the tenant’s proportionate share will be equal to 5%, or 10,000 \/ 200,000. Therefore, the higher the share, the more the tenant will have to assume a large part of the operating expenses and property taxes of the building.<\/p>\n In order to generate greater income for his business, an owner \/ manager will benefit from overestimating the rentable area of \u200b\u200bthe leased premises and underestimating the total leasable area of \u200b\u200bthe building. Unfortunately, some lessors manipulate the measurement data<\/a> and thus blur their tenants. The latter are kept in the dark.<\/p>\nLessors’ manipulations<\/strong><\/em><\/h2>\n
Next blogs<\/strong><\/em><\/h2>\n