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Real Estate Law
My concern relates to Tenant's Proportionate Share computation. I rented a retail space next to a film theater that

My concern pertains to the calculation of the Tenant's Proportionate Share. I have actually leased a retail space surrounding to a theater, which is also the proprietor. The theater utilizes around 90% of the mezzanine (the 2nd floor of the structure) for housing projectors and equipment to reveal films. In my industrial lease arrangement, the term "Tenant's Proportionate Share" the ratio of the Gross Leasable Area (GLA) of the Premises to the overall gross leasable area of completed structures in the Shopping mall. This excludes any office utilized by the supervisor of the Shopping Center, mezzanine and/or basement locations not designated for retail purposes, and any outside seating areas or garden stores. Given that the theater inhabits about 90% of the mezzanine for its own industrial use, should the property manager include or exclude the mezzanine in the GLA for the Common Area Maintenance (CAM) computation?

Real Estate Lawyer: Richard

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My concern relates to the computation of the Tenant's Proportionate Share. I have actually rented a retail space adjacent to a cinema, which is likewise the property manager. The theater makes use of approximately 90% of the mezzanine (the 2nd flooring of the structure) for housing projectors and equipment to show films. In my commercial 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 area of completed structures in the Shopping mall. This leaves out any workplace space utilized by the manager of the Shopping Center, mezzanine and/or basement locations not designated for retail purposes, and any outside seating locations or garden shops. Considered that the movie theater inhabits about 90% of the mezzanine for its own business usage, should the property owner consist of or omit the mezzanine in the GLA for the Common Area Maintenance (CAM) estimation?

Good afternoon. Yes, in this situation, you would require to include the mezzanine in the CAM computation considering that it is plainly being utilized for retail purposes due to its connection to the theatre.

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