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.
Florida Gross up Clause refers to a specific provision that is typically included in an Expense Stop Stipulated Base or Office Net Lease agreement in the state of Florida. This clause addresses the issue of increased expenses related to the operation and maintenance of the leased property. The purpose of a Gross up Clause is to ensure that the tenant is responsible only for their proportionate share of expenses, even if the overall expenses of the property increase beyond the Expense Stop amount stated in the lease agreement. This clause is particularly important in commercial leases where the tenant is responsible for a share of common area maintenance expenses, utilities, taxes, insurance, or any other costs associated with the leased property. In Florida specifically, there are different types of Gross up Clauses that can be utilized depending on the specific lease agreement. These include: 1. Straight-line Gross up: This type of clause allows the landlord to adjust the tenant's expense obligations based on the fluctuation in overall property expenses. The tenant's share of expenses is recalibrated to reflect the total proportionate increase, ensuring fairness and accuracy in expense allocations. 2. CPI (Consumer Price Index) Gross up: This type of clause incorporates the changes in the Consumer Price Index into the expense allocations. The CPI is a measure of inflation and by tying the adjustments to it, the clause accounts for changes in the cost of living and ensures a balanced distribution of expenses. 3. Operating Expense Gross up: In this type of clause, the tenant's obligations are adjusted based on increases in specific operating expenses, such as property taxes, insurance premiums, or utility costs. These expenses are typically outlined in the lease agreement, and the Gross up Clause ensures that the tenant pays their fair share even if these costs increase. The inclusion of a Florida Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease is vital to protect both the tenant and the landlord from unexpected or uncontrollable increases in property expenses. It provides a mechanism to maintain fairness and balance in expense allocations, ensuring that each party is responsible for their proportional share.Florida Gross up Clause refers to a specific provision that is typically included in an Expense Stop Stipulated Base or Office Net Lease agreement in the state of Florida. This clause addresses the issue of increased expenses related to the operation and maintenance of the leased property. The purpose of a Gross up Clause is to ensure that the tenant is responsible only for their proportionate share of expenses, even if the overall expenses of the property increase beyond the Expense Stop amount stated in the lease agreement. This clause is particularly important in commercial leases where the tenant is responsible for a share of common area maintenance expenses, utilities, taxes, insurance, or any other costs associated with the leased property. In Florida specifically, there are different types of Gross up Clauses that can be utilized depending on the specific lease agreement. These include: 1. Straight-line Gross up: This type of clause allows the landlord to adjust the tenant's expense obligations based on the fluctuation in overall property expenses. The tenant's share of expenses is recalibrated to reflect the total proportionate increase, ensuring fairness and accuracy in expense allocations. 2. CPI (Consumer Price Index) Gross up: This type of clause incorporates the changes in the Consumer Price Index into the expense allocations. The CPI is a measure of inflation and by tying the adjustments to it, the clause accounts for changes in the cost of living and ensures a balanced distribution of expenses. 3. Operating Expense Gross up: In this type of clause, the tenant's obligations are adjusted based on increases in specific operating expenses, such as property taxes, insurance premiums, or utility costs. These expenses are typically outlined in the lease agreement, and the Gross up Clause ensures that the tenant pays their fair share even if these costs increase. The inclusion of a Florida Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease is vital to protect both the tenant and the landlord from unexpected or uncontrollable increases in property expenses. It provides a mechanism to maintain fairness and balance in expense allocations, ensuring that each party is responsible for their proportional share.
