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We are negotiating a transaction for an existing restaurant in an existing office building. The landlord is claiming that the patio for the restaurant can be included in the rentable square footage as a “covered gallery”. And I have been leasing retail space for 35 years in this market and I’ve never seen the patio included in Rentable/leasable square footage.
Hi Kelly,
If the latest BOMA Office 2017 standard is being used in the lease then it is possible that the patio would be included in the rentable area, but certain conditions would have to be met. It's impossible for me to say without seeing photos and plans. In most cases, a Covered Gallery serves the building (or the public) and is excluded from rentable area. However, in some cases a Covered Gallery is used exclusively by a single tenant and may be considered an Unenclosed Occupant Feature, in which case it would be part of the Tenant's Rentable Area. See definitions below:
Unenclosed Occupant Feature:
A Balcony, Covered Gallery, or Finished Rooftop Terrace that is exclusively
used by a single Occupant and designated as Tenant Area.
Covered Gallery:
A Covered Gallery is a roofed area extending along the wall of a Building which
is supported by arches, columns, or other structural components. The Boundary
Area is measured to the innermost segments of the structural component(s) that
delineate the extent of the Covered Gallery.
thanks,
David