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Real Estate Law

My concern refers to Tenant's Proportionate Share computation. I leased a retail space next to a motion picture theater that


My concern relates to the estimation of the Tenant's Proportionate Share.
I have actually leased a retail area nearby to a theater, which is likewise the property owner. The theater utilizes roughly 90% of the mezzanine (the second flooring of the building) for housing projectors and devices to show films.
In my industrial lease contract, the term "Tenant's Proportionate Share" defines the ratio of the Gross Leasable Area (GLA) of the Premises to the overall gross leasable location of completed buildings in the Shopping Center. This omits any workplace utilized by the manager of the Shopping mall, mezzanine and/or basement areas not designated for retail purposes, and any outdoor seating areas or garden stores.
Given that the theater occupies about 90% of the mezzanine for its own commercial use, should the property manager consist of or leave out the mezzanine in the GLA for the Common Area Maintenance (CAM) calculation?


Real Estate Lawyer: Richard


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My concern refers to the calculation of the Tenant's Proportionate Share.
I have actually rented a retail space adjacent to a film theater, which is also the landlord. The theater utilizes around 90% of the mezzanine (the second floor of the building) for housing projectors and devices to reveal films.
In my business lease contract, the term " Tenant's Proportionate Share " defines the ratio of the Gross Leasable Area (GLA) of the Premises to the overall gross leasable location of completed buildings in the Shopping mall. This excludes any workplace utilized by the supervisor of the Center, mezzanine and/or basement locations not designated for retail purposes, and any outdoor seating areas or garden stores.
Considered that the cinema occupies about 90% of the mezzanine for its own business use, should the property owner consist of or leave out the mezzanine in the GLA for the Common Area Maintenance (CAM) estimation?


Good afternoon. Yes, in this scenario, you would need to consist of the mezzanine in the CAM calculation considering that it is plainly being utilized for retail purposes due to its connection to the theatre.


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The details offered here is not legal suggestions. Since each state has various complexities in their laws, the details offered is general in nature. This interaction does not establish an attorney-client relationship with you. I hope this response has been practical to you.


Are you familiar with any case law or statute in California that I can refer to?


I'm sorry, I do not have the particular statutory or case law language at hand. I have been involved in industrial leases for several years, including many that relate to movie theatres, and I simply know this is the basic practice. I have yet to experience one that wasn't calculated in this way.