The Washington Clause for Grossing Up the Tenant Proportionate Share is an important aspect of commercial lease agreements in Washington state. This clause outlines the method or formula used to calculate and adjust the tenant's proportionate share of certain expenses, often operating expenses or real estate taxes, in order to account for inflation or changes in the building's occupancy. One type of Washington Clause for Grossing Up the Tenant Proportionate Share is the "Consumer Price Index (CPI)" method. This method adjusts the tenant's proportionate share based on changes in the CPI, a measure of inflation, over a specified period. The adjustment is typically made annually, ensuring that the tenant's share reflects the current cost of operating expenses or taxes. Another type of Washington Clause is the "Building Occupancy" method. Under this method, the tenant's proportionate share is adjusted based on changes in the building's total occupancy or usage. If the building's occupancy increases or decreases, the tenant's share is adjusted accordingly to reflect the impact on expenses or taxes. Additionally, some leases may include a "Fixed Percentage Increase" method as part of the Washington Clause. This method establishes a predetermined percentage to increase the tenant's proportionate share annually, irrespective of changes in inflation or building occupancy. This approach provides certainty for both parties but may not accurately reflect the actual expenses or taxes incurred. In summary, the Washington Clause for Grossing Up the Tenant Proportionate Share ensures that tenants' obligations evolve in proportion to changes in expenses or taxes. By incorporating methods such as CPI, Building Occupancy, or Fixed Percentage Increase, landlords and tenants can establish a fair and predictable framework for adjusting the tenant's proportionate share in Washington state.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.