Contra Costa California Gross Up Clause in Base Year Lease In the world of commercial real estate leasing, the Contra Costa California Gross Up Clause is a crucial provision that aims to establish a fair allocation of operating expenses between landlords and tenants. This particular clause is commonly found in base year leases, which form the foundation for calculations of subsequent year's expenses. To gain a comprehensive understanding of the Contra Costa California Gross Up Clause, it is essential to explore its various types: 1. Full Building Gross Up Clause: As the name suggests, this type of gross up clause allows the landlord to allocate operating expenses across the entire property, regardless of the actual occupancy level. For example, if a commercial building is currently occupied at 80%, instead of calculating the expenses based only on this occupancy level, the full building gross up clause would involve an estimation considering the building's full capacity. This enables a fair distribution of costs, ensuring that tenants bear their proportionate share even if the property is not fully utilized. 2. Tenant-Specific Gross Up Clause: In cases where a tenant occupies a significant portion of the property, the tenant-specific gross up clause ensures accurate expense allocation based on their occupancy level. This approach avoids penalizing tenants for utilized spaces within the building and serves as a more tailored solution for accurate expense distribution. 3. Common Areas Gross Up Clause: When leasing a commercial property with shared common areas such as lobbies, restrooms, or parking lots, the common areas gross up clause plays a vital role. This provision enables the landlord to allocate operating expenses related to these common areas fairly among all tenants, ensuring equitable cost-sharing. The Contra Costa California Gross Up Clause serves to create a fair and equitable distribution of operating expenses in a base year lease. By implementing these different types of gross up clauses, landlords and tenants can work together to establish a system that accurately reflects the varying levels of occupancy and shared spaces within the property.
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.