Office Space Lease Agreement (OSLA) Casualty Damage and Restoration Article

An Office Space Lease Agreement (OSLA) Casualty Damage and Restoration Article is a OSLA article is a Casualty Damage and Restoration Article (which defines the rights, obligations, and procedures for both the landlord and the tenant in the event of casualty damage to the leased office space due to unforeseen but pre-specified events).

• Context:
  • It can include:
    • Definition of Significant Damage or Destruction Provision, which specifies what constitutes significant damage or destruction triggering the activation of the article.
    • (typically) a Casualty-Related Landlord's Obligation to Repair Clause, which details the landlord's obligation to repair or rebuild the damaged premises, including any conditions or exceptions to this obligation.
    • (typically) a Casualty-Related Right to Terminate Clause, which provides terms under which either party can terminate the lease if the damage is extensive and cannot be reasonably repaired within a certain timeframe.
    • (typically) a Tenant's Casualty Damage Notification Obligation Clause, which specifies how promptly a tenant must notify the landlord of any casualty event affecting the leased space.
    • (often) a Casualty-Related Rent Abatement Clause, for rent abatement or adjustment when the office space is uninhabitable or under repair.
    • (often) a Casualty Damage Caused by Tenant Clause.
    • (sometimes) a Casualty-Related Insurance Proceeds and Restoration Obligations Clause, which discusses handling insurance claims and allocating insurance proceeds for damages covered under casualty events.
    • (sometimes) a Force Majeure Clause, clarifying the extent to which parties are relieved from their contractual obligations due to acts beyond their control.
  • ...
• Example(s):
  • “ARTICLE XIV - DAMAGE TO DEMISED PREMISES” in [1]
  • One detailing that if a casualty partially damages the leased office space but is repairable within six months, the landlord shall undertake the necessary repairs at their expense, and the tenant's rent will be proportionally reduced based on the unusable portion of the premises.
  • One that includes a provision allowing for lease termination by either the landlord or the tenant if the office space is so extensively damaged that repairs would not be feasible within twelve months.
  • ...
• Counter-Example(s):
  • A Lease Renewal Article, which stipulates the conditions under which the lease may be renewed, unrelated to casualty or damage considerations.
  • A Rent Escalation Article, outlining how and when the rent will increase over the lease term, not related to casualty events.
• See: Commercial Lease Agreement, Casualty Damage-Related Clause, Property Insurance Article, Lease Termination Clause.

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References

2024

• GPT-4
  • Casualty Damage and Restoration Articles can vary significantly across different commercial real estate properties, reflecting each property type's unique needs, risks, and operational considerations. Here are some key differences:
    1. Office Buildings: These articles may emphasize the minimal disruption to tenant businesses during restoration. They might also focus on the restoration of shared spaces like lobbies and conference rooms, crucial for the professional appearance and operations of tenant businesses.

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