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.
The Michigan Clause for Grossing Up the Tenant Proportionate Share refers to a specific provision commonly found in commercial leases in the state of Michigan. This clause is crucial for determining the tenant's share of expenses related to operating and maintaining the leased property. In essence, the Michigan Clause for Grossing Up the Tenant Proportionate Share states that if the occupancy of the property falls below a certain threshold, typically a specified percentage as agreed upon in the lease, the landlord has the right to "gross up" the tenant's share of operating expenses. By grossing up, it means the landlord can adjust the tenant's proportionate share to account for the shortfall in occupancy. The purpose of this clause is to ensure that the landlord does not bear the burden of increased expenses when the property is not fully occupied. By grossing up the tenant's portion, the landlord seeks to distribute the costs fairly among all tenants, regardless of the occupancy rate. Different types of Michigan Clauses for Grossing Up the Tenant Proportionate Share may exist, and they can vary depending on the specific terms negotiated between the landlord and the tenant. Here are a few examples: 1. Straight Gross-Up: In this type of clause, the tenant's proportionate share is adjusted to cover the operational expenses based on the occupancy rate. The share is grossed up to reflect a hypothetical full occupancy scenario, even if the property is not fully leased. 2. Partial Gross-Up: This type of clause allows the landlord to adjust the tenant's proportionate share for expenses only up to a certain limit. For example, if the occupancy falls below a specified threshold, the landlord may gross up the tenant's share for a portion of the expenses, but not for the entire amount. 3. Variable Gross-Up: Some leases may include a clause that outlines a formula or method for calculating the gross-up of the tenant's proportionate share. This formula could take into account various factors such as the actual occupancy rate, the specific expenses being considered, or other agreed-upon variables. It is essential for both landlords and tenants to carefully review and negotiate the Michigan Clause for Grossing Up the Tenant Proportionate Share to ensure a fair and balanced allocation of expenses. This clause safeguards the landlord's interests in an under-occupied property while also protecting the tenant from shouldering excessive costs in situations beyond their control. Overall, the Michigan Clause for Grossing Up the Tenant Proportionate Share plays a significant role in establishing a comprehensive and equitable framework for expense allocation in commercial lease agreements.The Michigan Clause for Grossing Up the Tenant Proportionate Share refers to a specific provision commonly found in commercial leases in the state of Michigan. This clause is crucial for determining the tenant's share of expenses related to operating and maintaining the leased property. In essence, the Michigan Clause for Grossing Up the Tenant Proportionate Share states that if the occupancy of the property falls below a certain threshold, typically a specified percentage as agreed upon in the lease, the landlord has the right to "gross up" the tenant's share of operating expenses. By grossing up, it means the landlord can adjust the tenant's proportionate share to account for the shortfall in occupancy. The purpose of this clause is to ensure that the landlord does not bear the burden of increased expenses when the property is not fully occupied. By grossing up the tenant's portion, the landlord seeks to distribute the costs fairly among all tenants, regardless of the occupancy rate. Different types of Michigan Clauses for Grossing Up the Tenant Proportionate Share may exist, and they can vary depending on the specific terms negotiated between the landlord and the tenant. Here are a few examples: 1. Straight Gross-Up: In this type of clause, the tenant's proportionate share is adjusted to cover the operational expenses based on the occupancy rate. The share is grossed up to reflect a hypothetical full occupancy scenario, even if the property is not fully leased. 2. Partial Gross-Up: This type of clause allows the landlord to adjust the tenant's proportionate share for expenses only up to a certain limit. For example, if the occupancy falls below a specified threshold, the landlord may gross up the tenant's share for a portion of the expenses, but not for the entire amount. 3. Variable Gross-Up: Some leases may include a clause that outlines a formula or method for calculating the gross-up of the tenant's proportionate share. This formula could take into account various factors such as the actual occupancy rate, the specific expenses being considered, or other agreed-upon variables. It is essential for both landlords and tenants to carefully review and negotiate the Michigan Clause for Grossing Up the Tenant Proportionate Share to ensure a fair and balanced allocation of expenses. This clause safeguards the landlord's interests in an under-occupied property while also protecting the tenant from shouldering excessive costs in situations beyond their control. Overall, the Michigan Clause for Grossing Up the Tenant Proportionate Share plays a significant role in establishing a comprehensive and equitable framework for expense allocation in commercial lease agreements.
