This office lease clause should be used in an expense stop, stipulated base or office net lease. When the building is not at least 95% occupied during all or a portion of any lease year, the landlord shall make an appropriate adjustment for each lease year to determine what the building operating costs. Such an adjustment shall be made by the landlord increasing the variable components of such variable costs included in the building operating costs which vary based on the level of occupancy of the building.
The Arkansas Gross Up Clause refers to a specific provision that should be incorporated into an Expense Stop Stipulated Base or Office Net Lease agreement. This clause ensures fair allocation of operating expenses among tenants within a commercial property. Understanding the details and various types of Arkansas Gross Up Clauses is crucial for both landlords and tenants to accurately calculate and distribute expenses. In general, the Gross Up Clause is designed to account for variations in occupancy levels within a building or property. When there are vacant spaces, some expenses, such as utilities or maintenance costs, may be disproportionately allocated to the occupied spaces. The purpose of the Gross Up Clause is to adjust these expenses to reflect what they would have been if the property were fully occupied. There are different types of Arkansas Gross Up Clauses commonly used in Expense Stop Stipulated Base or Office Net Lease agreements. These include: 1. Full Building Gross Up: This type of clause applies to the entire building or property, regardless of individual tenant occupancy. It ensures that all expenses are proportionally allocated based on the total leasable square footage, regardless of whether certain areas are vacant or not. 2. Tenant-Specific Gross Up: With this clause, expenses are adjusted based on the leased space of each tenant. It considers the square footage or percentage of the property occupied by each tenant when calculating their share of operating expenses. It ensures that each tenant pays their fair share relative to their occupancy level. 3. Historical Gross Up: This type of clause calculates expenses based on the historical occupancy levels of the property. It takes into account the average occupancy rate over a predetermined period to determine the allocation of expenses. This approach provides a more stable and predictable expense allocation, especially in properties with fluctuating occupancy rates. 4. Current Year Gross Up: In this scenario, operating expenses are allocated based on the actual occupancy levels during the current year. It provides a more accurate representation of the expenses at the time and adjusts accordingly for vacant spaces. It is important to note that the specific language and terms of the Arkansas Gross Up Clause may vary depending on the lease agreement and the preferences of both the landlord and the tenant. Legal advice and clarifications should be sought when drafting or reviewing the clauses to ensure compliance with Arkansas law and to protect the interests of all parties involved in the lease agreement.
The Arkansas Gross Up Clause refers to a specific provision that should be incorporated into an Expense Stop Stipulated Base or Office Net Lease agreement. This clause ensures fair allocation of operating expenses among tenants within a commercial property. Understanding the details and various types of Arkansas Gross Up Clauses is crucial for both landlords and tenants to accurately calculate and distribute expenses. In general, the Gross Up Clause is designed to account for variations in occupancy levels within a building or property. When there are vacant spaces, some expenses, such as utilities or maintenance costs, may be disproportionately allocated to the occupied spaces. The purpose of the Gross Up Clause is to adjust these expenses to reflect what they would have been if the property were fully occupied. There are different types of Arkansas Gross Up Clauses commonly used in Expense Stop Stipulated Base or Office Net Lease agreements. These include: 1. Full Building Gross Up: This type of clause applies to the entire building or property, regardless of individual tenant occupancy. It ensures that all expenses are proportionally allocated based on the total leasable square footage, regardless of whether certain areas are vacant or not. 2. Tenant-Specific Gross Up: With this clause, expenses are adjusted based on the leased space of each tenant. It considers the square footage or percentage of the property occupied by each tenant when calculating their share of operating expenses. It ensures that each tenant pays their fair share relative to their occupancy level. 3. Historical Gross Up: This type of clause calculates expenses based on the historical occupancy levels of the property. It takes into account the average occupancy rate over a predetermined period to determine the allocation of expenses. This approach provides a more stable and predictable expense allocation, especially in properties with fluctuating occupancy rates. 4. Current Year Gross Up: In this scenario, operating expenses are allocated based on the actual occupancy levels during the current year. It provides a more accurate representation of the expenses at the time and adjusts accordingly for vacant spaces. It is important to note that the specific language and terms of the Arkansas Gross Up Clause may vary depending on the lease agreement and the preferences of both the landlord and the tenant. Legal advice and clarifications should be sought when drafting or reviewing the clauses to ensure compliance with Arkansas law and to protect the interests of all parties involved in the lease agreement.
