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How to link size in the Commercial Lease Agreement

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[Music] oftentimes whether for financial reasons or to make better use of a space a tenant who is under a lease for commercial property can re-rent a certain area or all of the space to a sub-tenant by using a commercial sublease agreement however sub-leasing goes beyond simply drafting a document and assuming a role in the tenant sub-tenant relationship thats why in this video well discuss noteworthy measures to take when subleasing commercial property and well summarize how to create an effective legally binding agreement make sure that you watch to the end of this video for an official template what is a commercial sublease agreement a commercial sublease agreement is a document used by an individual or business entity attempting to sublet part or all of the commercial space that they currently occupy under a lease with its owner the reasoning behind the original tenant seeking a sublease varies from case to case for instance if the property contains office space the current tenan

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What are typical clauses aspects of a commercial lease?

The Use Clause and Exclusive Clause A use clause limits how youll use the rented space. The limitations can be as broad as what business youll conduct there, as narrow as what specific services or products youll offer, or as nebulous as the quality level of your operation.

How do you measure tenant space?

The Rentable Area of a suite on the floor is computed by multiplying the Usable Area of that suite by the quotient of the division of the Rentable Floor Area of the floor by the Usable Area of the floor resulting in the RF/U Ratio.

How is rentable area measured?

The Rentable Area of floor area is computed by measuring to the inside finished surface of the dominant portions of the permanent outer building walls, excluding any major vertical penetrations of the floor. No deduction is made for columns and projections necessary to the building.

How do you calculate rentable space?

Rentable Square Footage Formula (RSF) Where: Usable Square Footage (USF) = Total Floor Area (TFA) Common Area. Load Factor = Rentable Square Footage (RFS) Usable Square Feet (USF)

How do you measure commercial square footage?

To measure commercial square footage for a rectangular space, multiply the length of the room in feet by its width. For example, a room that is 12 feet long by 12 feet wide is 144 square feet.

How do you measure rentable space?

The rentable square footage of an office includes the usable square footage plus a percentage of the floor space of all shared areas in the building. Common areas, including communal restrooms, hallways, lobbies, cafeterias, gyms, and even on-site property management offices, may be included in this calculation.

What is included in rentable area?

Simply put, rentable square feet is the space the tenant inhabits. For example, if a tenant rents a single office room that comes with a closet, both the closet and the room will be calculated when determining the rentable square footage.

Do leases include square footage?

Some leases give the square footage of the tenants space, or they include floor plans with dimensions from which you can calculate the size of the space. But giving square footage numbersor including a floor plan with dimensionscould be ammunition for a tenant eager to walk away from its lease or cut its rent.

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