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.
A Georgia gross up clause is an important provision to be included in an Expense Stop Stipulated Base or Office Net Lease in Georgia. It primarily addresses the allocation of operating expenses between the landlord and tenant, ensuring fairness and preventing unexpected financial burdens. In the context of a lease agreement, an Expense Stop is a predetermined amount set by the landlord, limiting the tenant's liability for operating expenses. Often, this Expense Stop covers a certain percentage of the total expenses in a given year. However, as operating costs fluctuate, it is crucial to have a Georgia gross up clause to account for any increases beyond the Expense Stop. The Georgia gross up clause allows the landlord to proportionally distribute the increased expenses that exceed the Expense Stop among all the tenants. This clause ensures that no individual tenant incurs a disproportionately large share of additional costs due to fluctuations in operating expenses. Different types of Georgia gross up clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease include: 1. Pro Rata Gross Up: This type of gross up clause allocates the additional expenses on a pro rata basis among all tenants in the building. Each tenant pays a proportionate share based on their square footage or other applicable factors specified in the lease. 2. Useable Square Footage Gross Up: In this approach, the allocation of increased expenses is based on the tenant's useable square footage, rather than the rentable square footage. This ensures that tenants with larger useable spaces bear a higher proportion of the additional costs. 3. Triple Net Gross Up: In a triple net lease, where tenants are responsible for all operating expenses, the gross up clause can be used to adjust the tenant's share of expenses that exceed the Expense Stop. This allows tenants to pay their fair share of additional costs, considering their respective lease agreements. Including a well-drafted Georgia gross up clause in an Expense Stop Stipulated Base or Office Net Lease provides transparency and protects both the landlord and tenants from unexpected financial burdens. It helps maintain a balanced allocation of operating expenses, ensuring fairness among all parties involved.
A Georgia gross up clause is an important provision to be included in an Expense Stop Stipulated Base or Office Net Lease in Georgia. It primarily addresses the allocation of operating expenses between the landlord and tenant, ensuring fairness and preventing unexpected financial burdens. In the context of a lease agreement, an Expense Stop is a predetermined amount set by the landlord, limiting the tenant's liability for operating expenses. Often, this Expense Stop covers a certain percentage of the total expenses in a given year. However, as operating costs fluctuate, it is crucial to have a Georgia gross up clause to account for any increases beyond the Expense Stop. The Georgia gross up clause allows the landlord to proportionally distribute the increased expenses that exceed the Expense Stop among all the tenants. This clause ensures that no individual tenant incurs a disproportionately large share of additional costs due to fluctuations in operating expenses. Different types of Georgia gross up clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease include: 1. Pro Rata Gross Up: This type of gross up clause allocates the additional expenses on a pro rata basis among all tenants in the building. Each tenant pays a proportionate share based on their square footage or other applicable factors specified in the lease. 2. Useable Square Footage Gross Up: In this approach, the allocation of increased expenses is based on the tenant's useable square footage, rather than the rentable square footage. This ensures that tenants with larger useable spaces bear a higher proportion of the additional costs. 3. Triple Net Gross Up: In a triple net lease, where tenants are responsible for all operating expenses, the gross up clause can be used to adjust the tenant's share of expenses that exceed the Expense Stop. This allows tenants to pay their fair share of additional costs, considering their respective lease agreements. Including a well-drafted Georgia gross up clause in an Expense Stop Stipulated Base or Office Net Lease provides transparency and protects both the landlord and tenants from unexpected financial burdens. It helps maintain a balanced allocation of operating expenses, ensuring fairness among all parties involved.
