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.
In a Hawaii Gross up Clause, which should be utilized in an Expense Stop Stipulated Base or Office Net Lease agreement, the tenant is responsible for paying their proportionate share of certain expenses related to the property. However, this clause allows for the Gross up of those expenses in specific situations. The purpose of the Hawaii Gross up Clause is to ensure that the expenses are fairly distributed among all tenants, taking into account changes in occupancy levels or fluctuations in expense amounts. This clause is especially relevant in commercial leases where multiple tenants are sharing the operating costs of a property. There are several types of Hawaii Gross up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease, depending on the specific needs of the landlord and tenant. 1. Flat Percentage Gross up Clause: This type of clause establishes a fixed percentage by which the expenses will be grossed up. For example, if the Gross up percentage is set at 10%, the landlord will increase the expenses by 10% to account for any vacant space or uncollected rents. 2. Occupancy Percentage Gross up Clause: With this clause, the landlord will adjust the expenses based on the percentage of occupied space in the building. If the occupancy rate is, for instance, 80%, the landlord will gross up the expenses by 125% (100% divided by 80%) to cover the entire building's operating costs. 3. Expense Increase Gross up Clause: This type of clause allows the landlord to gross up the expenses if there is a significant increase in certain operating costs, such as property taxes or utilities. The clause will specify the percentage or parameters that trigger the gross up, ensuring that the tenant's share accurately reflects the increased expenses. 4. Expense Stability Gross up Clause: This clause is designed to stabilize expenses for the tenant by grossing up the costs. It ensures that the tenant's expenses will not fluctuate dramatically due to an increase in overall expenses or a reduction in occupancy levels. The landlord will bear the risk of any changes in operating costs. It is important for both landlords and tenants to carefully consider the specific type of Hawaii Gross up Clause that should be utilized in their Expense Stop Stipulated Base or Office Net Lease. Consulting with a legal professional who specializes in real estate law is recommended to ensure the clause accurately reflects the intentions and protects the interests of both parties.
In a Hawaii Gross up Clause, which should be utilized in an Expense Stop Stipulated Base or Office Net Lease agreement, the tenant is responsible for paying their proportionate share of certain expenses related to the property. However, this clause allows for the Gross up of those expenses in specific situations. The purpose of the Hawaii Gross up Clause is to ensure that the expenses are fairly distributed among all tenants, taking into account changes in occupancy levels or fluctuations in expense amounts. This clause is especially relevant in commercial leases where multiple tenants are sharing the operating costs of a property. There are several types of Hawaii Gross up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease, depending on the specific needs of the landlord and tenant. 1. Flat Percentage Gross up Clause: This type of clause establishes a fixed percentage by which the expenses will be grossed up. For example, if the Gross up percentage is set at 10%, the landlord will increase the expenses by 10% to account for any vacant space or uncollected rents. 2. Occupancy Percentage Gross up Clause: With this clause, the landlord will adjust the expenses based on the percentage of occupied space in the building. If the occupancy rate is, for instance, 80%, the landlord will gross up the expenses by 125% (100% divided by 80%) to cover the entire building's operating costs. 3. Expense Increase Gross up Clause: This type of clause allows the landlord to gross up the expenses if there is a significant increase in certain operating costs, such as property taxes or utilities. The clause will specify the percentage or parameters that trigger the gross up, ensuring that the tenant's share accurately reflects the increased expenses. 4. Expense Stability Gross up Clause: This clause is designed to stabilize expenses for the tenant by grossing up the costs. It ensures that the tenant's expenses will not fluctuate dramatically due to an increase in overall expenses or a reduction in occupancy levels. The landlord will bear the risk of any changes in operating costs. It is important for both landlords and tenants to carefully consider the specific type of Hawaii Gross up Clause that should be utilized in their Expense Stop Stipulated Base or Office Net Lease. Consulting with a legal professional who specializes in real estate law is recommended to ensure the clause accurately reflects the intentions and protects the interests of both parties.
