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Real Estate Law

My question relates to Tenant’s Proportionate Share . I rented a retail area next to a movie theater that

My question refers to the estimation of the Tenant’s Proportionate Share.
I have actually leased a retail space nearby to a motion picture theater, which is likewise the property owner. The theater uses roughly 90% of the mezzanine (the second floor of the structure) for housing projectors and devices to reveal motion pictures.
In my industrial lease contract, the term “Tenant’s Proportionate Share” specifies the ratio of the Gross Leasable Area (GLA) of the Premises to the total gross leasable location of completed structures in the Shopping Center. This excludes any office space used by the supervisor of the Shopping Center, mezzanine and/or basement locations not designated for retail functions, and any outside seating locations or garden shops.
Considered that the theater inhabits about 90% of the mezzanine for its own business usage, should the property manager consist of or omit the mezzanine in the GLA for the Common Area Maintenance (CAM) computation?

Real Estate Lawyer: Richard

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My question relates to the calculation of the Tenant’s Proportionate Share.
I have leased a retail area surrounding to a theater, which is also the proprietor. The theater uses roughly 90% of the mezzanine (the 2nd flooring of the structure) for housing projectors and devices to reveal motion pictures.
In my industrial lease arrangement, 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 structures in the Shopping Center. This leaves out any office used by the supervisor of the Shopping Center, mezzanine and/or basement areas not designated for retail functions, and any outdoor seating areas or garden stores.
Considered that the theater occupies about 90% of the mezzanine for its own business usage, should the property manager consist of or leave out the mezzanine in the GLA for the Common Area Maintenance (CAM) computation?

Good afternoon. Yes, in this scenario, you would require to consist of the mezzanine in the CAM computation considering that it is clearly being used for retail purposes due to its connection to the theatre.

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The information supplied here is illegal advice. Since each state has different complexities in their laws, the information offered is general in nature. This interaction does not develop an attorney-client relationship with you. I hope this answer has actually been handy to you.

Are you mindful of 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 commercial leases for years, including numerous that relate to film theatres, and I merely understand this is the standard practice. I have yet to experience one that wasn’t determined in this way.