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My question relates to Tenant's Proportionate Share estimation. I leased a retail area beside a cinema that

My concern pertains to the estimation of the Tenant's Proportionate Share. I have actually leased a retail space nearby to a theater, which is also the property owner. The theater makes use of roughly 90% of the mezzanine (the 2nd flooring of the structure) for housing projectors and equipment to reveal 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 total gross leasable area of completed structures in the Shopping mall. This leaves out any workplace space utilized by the supervisor of the Shopping Center, mezzanine and/or basement locations not designated for retail purposes, and any outdoor seating areas or garden stores. Given that the film theater inhabits about 90% of the mezzanine for its own business use, should the proprietor consist of or leave out the mezzanine in the GLA for the Common Area Maintenance (CAM) estimation?

Real Estate Lawyer: Richard

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My concern refers to the calculation of the Tenant's Proportionate Share. I have leased a retail area nearby to a theater, which is likewise the property owner. The theater makes use of approximately 90% of the mezzanine (the second flooring of the building) for housing projectors and equipment to show motion pictures. In my business lease arrangement, the term " Tenant's Proportionate Share " defines the ratio of the Gross Leasable Area (GLA) of the Premises to the total gross leasable area of completed structures in the Shopping Center. This leaves out any workplace utilized by the supervisor of the Shopping mall, mezzanine and/or basement areas not designated for retail functions, and any outdoor seating areas or garden shops. Considered that the theater occupies about 90% of the mezzanine for its own business use, should the landlord include or leave out the mezzanine in the GLA for the Common Area Maintenance (CAM) estimation?

Good afternoon. Yes, in this circumstance, you would need to consist of the mezzanine in the CAM calculation because it is clearly being utilized for retail functions due to its connection to the theatre.

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

I'm sorry, I don't have the specific statutory or case law language at hand. I have been associated with commercial leases for several years, consisting of numerous that refer to film theatres, and I merely know this is the standard practice. I have yet to come across one that wasn't calculated in this way.