Nearly every commercial lease includes a clause stating that the building’s square footage is an approximation and that rent will not be adjusted if the actual area differs.
For many property owners, that language feels like protection.
It isn’t always.
Recent court decisions have demonstrated that if a square footage figure is materially inaccurate, standard disclaimer language may not be enough to prevent disputes. Courts have shown they are willing to examine whether the number itself was reasonable and whether the parties relied on it during lease negotiations.
The lesson is straightforward.
A lease clause cannot correct an inaccurate measurement.
Why Square Footage Matters
Square footage affects far more than the monthly rent.
It influences:
- Base rent
- CAM allocations
- Property taxes
- Insurance costs
- Asset valuation
- Lease negotiations
When that number is inaccurate, every calculation built on it can be questioned. Even a small error compounds. A 5% measurement discrepancy on a 50,000 sq ft space can mean tens of thousands of dollars in misallocated CAM charges over the life of a lease.
Where Problems Begin
Most inaccurate lease areas aren’t the result of misconduct.
They’re usually inherited.
Property owners often rely on:
- Previous lease documents
- Historic floor plans
- Tax assessor records
- Older building drawings
- Measurements completed under outdated standards
After years of renovations, tenant improvements, and evolving measurement standards, those numbers can drift significantly from reality.
What the Courts Have Said
In McClain v. Octagon Plaza, LLC (2008), a tenant alleged the leased area was materially smaller than represented. Although the lease described the square footage as approximate, the court held that disclaimer language alone did not automatically defeat claims if the tenant could demonstrate the representation was materially inaccurate and the landlord knew, or reasonably should have known, the figure was incorrect.
Similarly, in Thrifty Payless, Inc. v. The Americana at Brand, LLC (2013), the court found that pre-lease representations regarding costs and square footage could still be relevant, even where the lease contained standard integration language.
Neither decision suggests that disclaimer clauses have no value.
Instead, they reinforce an important principle: the underlying measurement still matters.
*This isn’t legal advice, always consult counsel on your specific lease.*
A Better Approach
The most effective way to reduce risk is to verify the number before it appears in the lease.
An independent measurement performed under the current BOMA Office Standard creates a consistent, defensible record that owners, brokers, property managers, and tenants can all rely on.
Compared with the cost of resolving a rent dispute or defending a claim, verifying a building’s lease area is a relatively small investment.
Accurate measurements do more than support fair leasing.
They protect relationships, reduce uncertainty, and give everyone confidence that they’re working from the same information.
Before your next lease is signed, ask one simple question: How confident are you that the square footage is correct? If you’re not sure, an independent BOMA measurement, or a consult on your existing plans, can settle the question.