Don't Put Square Footage or Dimensions in Lease

Some leases give the square footage of the tenant’s space, or they include floor plans with dimensions from which you can calculate the size of the space. But giving square footage numbers—or including a floor plan with dimensions—could be ammunition for a tenant eager to walk away from its lease or cut its rent. If the tenant can prove that your numbers are wrong, it may claim that you’ve violated the lease by misrepresenting the size of its space. The tenant may convince a court to let it out of the lease or lower the rent.

Square-footage misrepresentations are also an easy target for auditors that tenants sometimes hire to check the lease for overcharges. Auditors that want to collect a fee based on how much a tenant’s rent is cut will be on the lookout for square-footage misrepresentations.

If a tenant asks you to give the size, one strategy to consider using is to suggest to the tenant that it measure the space itself before signing the lease. Explain to the tenant that the individual parts of the rent formula (e.g., the rent per square foot or the size of the space) aren’t as important as the total package. In other words, the tenant should consider whether the total monthly rent is acceptable—and whether the space generally works for the tenant’s purpose. Is it big enough? Does the architecture suit the use? Will the traffic patterns work? Ask your attorney about other options for avoiding disputes arising from this issue. 

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