This office lease form is a supplement regarding the building operating expenses which are escalated to the tenant. This form lists items to be excluded from the calculation of building operating costs.
The North Carolina Building Operating Cost Addendum is an important document that outlines the additional expenses associated with operating a building in the state of North Carolina. It provides a detailed breakdown of various costs incurred by building owners or landlords and sets forth the obligations of tenants to pay their share of these costs. Key terms related to the North Carolina Building Operating Cost Addendum include: 1. Operating costs: This refers to the expenses incurred to keep a building functioning properly. It includes costs associated with utilities, maintenance, repairs, insurance, property management, security, and other similar expenses. 2. Common area maintenance (CAM) expenses: These are costs related to the maintenance and repair of common areas within a building or complex. Examples may include landscaping, parking lot maintenance, and common area lighting. 3. Pass-through expenses: These are expenses that are passed on from the building owner to the tenant. The addendum specifies which operating costs the tenant is responsible for paying and how these costs will be calculated. 4. Base year: The addendum may establish a base year for calculating the tenant's share of operating costs. The base year typically represents a specific year during which the building's operating costs are determined. Subsequent years' costs are then compared to the base year's costs to calculate any increases in expenses and the tenant's share. Types of North Carolina Building Operating Cost Addendums may vary based on specific building types or lease agreements. For example: 1. Commercial Building Operating Cost Addendum: This addendum is used for commercial properties such as office buildings, retail spaces, and industrial facilities. It outlines the operating costs specific to these types of properties. 2. Residential Building Operating Cost Addendum: This addendum pertains to residential buildings, including apartment complexes or multi-unit rental properties. It details the operating costs that are applicable to residential tenants. 3. Mixed-Use Building Operating Cost Addendum: This addendum covers buildings that have a combination of commercial and residential units. It accounts for both the common area maintenance expenses relevant to all tenants and the specific operating costs applicable to each tenant type. In conclusion, the North Carolina Building Operating Cost Addendum is a crucial document that clarifies the financial responsibilities between building owners and tenants. It defines various operating costs, establishes the tenant's share, and ensures transparency regarding the allocation of expenses. Different types of addendums exist depending on the nature of the building, such as commercial, residential, or mixed-use properties.
