This office lease clause states the conditions under which the landlord can and can not furnish any particular item(s) of work or service which would constitute an expense to portions of the Building during the comparative year.
Colorado Clause for Grossing Up the Tenant Proportionate Share refers to a specific provision within a commercial lease agreement that addresses the allocation of expenses related to the operating costs of a property between the landlord and the tenant. In simple terms, it determines how much of the shared expenses the tenant is responsible for, and whether the tenant's share includes any additional amounts for taxes or other factors. The Colorado Clause for Grossing Up the Tenant Proportionate Share is particularly relevant in the context of multi-tenant commercial properties, such as office buildings, retail centers, or industrial complexes. These properties typically have common areas, shared services, and various operating and maintenance costs that are divided among the tenants based on their percentage of leased space or pro rata share. In the Colorado region, there can be different types of clauses when it comes to grossing up the tenant proportionate share. Some commonly encountered ones include: 1. Standard Gross Up Clause: This type of clause states that the tenant's proportionate share of the operating expenses will be calculated based on the ratio of their leased space to the total leasable area of the property. It does not involve any adjustment for other factors, such as vacancy rates or changes in taxes. 2. Expense Stop Gross Up Clause: This clause sets a limit or cap on the tenant's responsibility for operating expenses. The tenant is only responsible for their proportionate share of expenses up to a certain predetermined amount. Any expenses exceeding the "stop" limit are not included in the tenant's share calculation. This type of clause provides a level of predictability to the tenant regarding their overall cost obligations. 3. Tax Gross Up Clause: This clause takes into consideration changes in real estate taxes that may occur during the tenant's lease term. It allows the landlord to adjust the tenant's proportionate share of expenses to account for any increases or decreases in taxes. The formula used for such adjustments can vary, but it typically involves estimating the expenses based on different tax rates and comparing them to the actual costs incurred. The Colorado Clause for Grossing Up the Tenant Proportionate Share is crucial for both landlords and tenants to ensure a fair and balanced allocation of expenses. It helps establish clear guidelines on how operating costs will be divided and provides transparency in financial matters. As with any lease provision, it is advisable for both parties to carefully review and negotiate the specific terms of the clause to protect their respective interests and mitigate potential disputes.
