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Interpretation of "Premises" in commercial lease agreement

February 10, 2021

I have a lease that states "Landlord rents to Tenant and Tenant rents from Landlord, the real property and improvements described as: XXXX Avenue, Los Angeles, CA ("Premises"), which comprise approximately 100.000% of the total square footage of rentable space in the entire property."

My question: how do you define "Premises" in accordance with BOMA that would apply to this lease? Specifically, i want to know whether a tenant is considered responsible for a main electrical panel standing on the exterior of the building in a large stand-alone kiosk type closet. The rear of the panel is adjacent to but not attached to the building. Would such a large main electrical panel be included in the "total square footage of rental space in the entire property"?

Thank you.

David Fingret
Extreme Measures Inc.
February 11, 2021

Hi Stacy,

Does the lease designate BOMA 2010 Retail as the measurement standard? The word "premises" is used in the BOMA Retail Standard but is not a defined term. In the BOMA 2010 Retail Standard, only enclosed areas may be included in Gross Leasable Area (GLA). It is defined as:

The total enclosed floor area designed for the exclusive use of an occupant, including any basements, mezzanines, or upper floors.

I am not sure if the electrical panel is enclosed or not. The minimum requirement for an enclosed area is a roof.

In any event, the space in question sounds like a common area, ancillary area, or site improvement, all of which are not included in the Gross Leasable Area. Your lease may state that you pay for 100% of the total square footage of "rentable space" in the entire property, but I don't believe the electrical panel is part of the rentable space.

Unfortunately, the BOMA 2010 Retail Standard doesn't provide much information for single tenant retail buildings. It would be best to hire a specialist to review the lease document and review the plans and photos of the property in order to make a better determination.


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