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 Illinois Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease is an important provision that protects both landlords and tenants in leasing agreements. It ensures fair and equitable allocation of operating expenses among all tenants within a commercial property. A Gross Up Clause is particularly relevant in Illinois, where it is essential to indicate the specific types applicable in these lease agreements. The purpose of the Gross Up Clause is to account for fluctuating expenses, such as property taxes, insurance premiums, utilities, and maintenance costs within the leased property. This clause allows the landlord to estimate the total expenses for a particular period and distribute them equally among all the tenants. In Illinois, specifically, there are three types of Gross Up Clauses that can be utilized in an Expense Stop Stipulated Base or Office Net Lease: 1. Full Gross Up Clause: This type of clause requires the landlord to adjust the expenses for the entire property, including any vacant units. The landlord calculates the expenses as if all the units were occupied and distributes the costs equally among all tenants. This ensures that tenants are not burdened with higher expenses due to unoccupied units. 2. Partial Gross Up Clause: This clause allows the landlord to gross up the expenses only for the occupied units. The landlord excludes any vacant units while calculating and distributing the expenses among the tenants. This clause is beneficial for landlords when there are significant periods of unit vacancies within the property. 3. Building-Area Gross Up Clause: This type of clause is commonly used when a property has multiple buildings or sections. In this case, the landlord calculates and grosses up the expenses only for the specific building or area occupied by the tenant. This provides a more accurate reflection of the tenant's share of the operating expenses. By incorporating one of these Illinois-specific Gross Up Clauses in an Expense Stop Stipulated Base or Office Net Lease, landlords and tenants can ensure transparency and fairness in sharing the operational costs of a commercial property. It is essential to consult legal experts or professionals experienced in commercial leasing to properly draft and include the appropriate Gross Up Clause depending on the specific circumstances of the lease agreement.
The Illinois Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease is an important provision that protects both landlords and tenants in leasing agreements. It ensures fair and equitable allocation of operating expenses among all tenants within a commercial property. A Gross Up Clause is particularly relevant in Illinois, where it is essential to indicate the specific types applicable in these lease agreements. The purpose of the Gross Up Clause is to account for fluctuating expenses, such as property taxes, insurance premiums, utilities, and maintenance costs within the leased property. This clause allows the landlord to estimate the total expenses for a particular period and distribute them equally among all the tenants. In Illinois, specifically, there are three types of Gross Up Clauses that can be utilized in an Expense Stop Stipulated Base or Office Net Lease: 1. Full Gross Up Clause: This type of clause requires the landlord to adjust the expenses for the entire property, including any vacant units. The landlord calculates the expenses as if all the units were occupied and distributes the costs equally among all tenants. This ensures that tenants are not burdened with higher expenses due to unoccupied units. 2. Partial Gross Up Clause: This clause allows the landlord to gross up the expenses only for the occupied units. The landlord excludes any vacant units while calculating and distributing the expenses among the tenants. This clause is beneficial for landlords when there are significant periods of unit vacancies within the property. 3. Building-Area Gross Up Clause: This type of clause is commonly used when a property has multiple buildings or sections. In this case, the landlord calculates and grosses up the expenses only for the specific building or area occupied by the tenant. This provides a more accurate reflection of the tenant's share of the operating expenses. By incorporating one of these Illinois-specific Gross Up Clauses in an Expense Stop Stipulated Base or Office Net Lease, landlords and tenants can ensure transparency and fairness in sharing the operational costs of a commercial property. It is essential to consult legal experts or professionals experienced in commercial leasing to properly draft and include the appropriate Gross Up Clause depending on the specific circumstances of the lease agreement.
