Lease Area Surveys

About Lease Area Surveys

A Lease Area Survey, also known as a Leasehold Survey, Lease Exhibit Survey, Lease Delineation Survey, or Area Calculation Survey is a specialized type of land survey conducted to accurately define and document the boundaries and area of a leased property. It’s primarily used in commercial real estate transactions, particularly for leasing land or buildings.

Purpose of Lease Area Surveys

Both the leassor and leassee have a stake in Lease Area Surveys:

• Rent Calculation: Commercial and industrial leases are often calculated based on square footage. Accurate measurement is crucial to ensure both the landlord and tenant agree on the rental amount. Disputes over square footage can be costly.
• Common Area Calculation: Leases often involve shared common areas (hallways, restrooms, lobbies). The survey determines how much of these areas are allocated to the tenant for rent calculations.
• CAM Charges (Common Area Maintenance): Tenants often pay a share of CAM charges. Accurate square footage is necessary to correctly calculate the tenant's proportionate share.
• Lease Negotiation: Before signing a lease, a prospective tenant will often request a lease area survey to verify the advertised square footage and ensure it meets their needs.
• Prevent Disputes: A professionally prepared lease area survey provides a clear, accurate record of the leased space, minimizing the potential for disagreements between the landlord and tenant.
• Insurance and Liability: Accurate lease area documentation helps in determining insurance coverage and liability responsibilities.
• Future Development: If the tenant plans to make improvements or alterations to the leased space, the survey provides a base map for planning and permits.

Crafting a Lease Area Survey

Preparing a Lease Area Survey is a detailed undertaking involving:

• Document Review:
  • Lease Agreement: The surveyor carefully reviews the lease agreement to understand the specific area being leased, any exclusions, and any specific measurement requirements outlined in the contract.
  • Existing Plans: Any existing building plans, floor plans, or previous surveys are reviewed for accuracy and to provide a baseline for the survey.
• Fieldwork:
  • Precise Measurement: The surveyor uses specialized equipment (total stations, laser scanners, digital measuring tools) to measure the interior perimeter of the leased space with high precision.
  • Interior Features: Measurements are taken around all interior walls, columns, and other features that define the leased area.
  • Common Area Delineation: The surveyor determines the boundaries of the leased space in relation to common areas and accurately measures the tenant’s share of these areas.
  • Elevation Data (Sometimes): In some cases, particularly for multi-story buildings, elevation data may be collected to account for differing floor heights.
• Data Processing & Calculation:
  • Area Calculation: Using the field measurements, the surveyor calculates the gross area, rentable area (which may include a share of common areas), and usable area of the leased space. Different methods of area calculation exist (e.g., BOMA standards), and the surveyor will use the appropriate method as specified in the lease.
  • Preparation of a Sketch/Plan: A clear sketch or plan is prepared showing the leased area, dimensions, and the calculated square footage. This sketch is typically certified by the surveyor.
• Creation of Deliverables:
  • Certified Sketch/Plan: A detailed sketch or plan showing the leased area and dimensions.
  • Area Calculation Report: A report outlining the method used for calculating the area, the measured dimensions, and the final square footage.
  • Certification: The surveyor will certify the accuracy of the measurements and calculations.

Lease Area Survey Considerations

A lease area survey is a critical tool for ensuring transparency, fairness, and legal compliance in commercial leasing transactions. It provides a clear understanding of the property boundaries, size, and any relevant restrictions or easements, protecting the interests of both landlords and tenants.

• BOMA Standards: The Building Owners and Managers Association (BOMA) has established widely accepted standards for measuring building space. These standards define how to measure different types of areas and what to include or exclude. Many commercial leases specify that BOMA standards should be used.
• Rentable vs. Usable Area: It's important to understand the difference between rentable and usable area. Usable area is the actual space the tenant occupies, while rentable area includes a share of common areas. The lease will specify which type of area is used for calculating rent.
• Accuracy: A lease area survey requires a high degree of accuracy, as even small discrepancies can add up to significant differences in rental costs.

Frequently Asked Questions

Who Performs a Lease Area Survey?

A licensed Alberta Land Surveyor or a commercial measurement specialist (often a surveyor with specialized training in commercial measurement) is qualified to perform a lease area survey. They have the expertise and equipment to ensure accurate measurements and calculations.