This office lease clause should be used in a base year lease. This form states that 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 in accordance with industry standards of the building operating costs. This amount shall be deemed to be the amount of building operating costs for the year.
A North Carolina gross up clause, also known as a gross-up provision, is a stipulation that can be included in a base year lease agreement. It essentially ensures that the tenant is responsible for bearing a proportionate share of the increased operating expenses associated with the property, beyond the base year. One type of North Carolina gross up clause commonly used in a base year lease is the "Standard Gross Up Clause." This clause requires the tenant to pay a higher portion of operating expenses when they exceed the base year amount. The gross-up calculation is typically based on a predetermined percentage, such as the tenant's proportionate share of the total rentable square footage. Another variation is the "Full Gross Up Clause," where the tenant is obliged to pay their proportionate share of the increased operating expenses without any limitation. This clause ensures that the tenant covers these expenses entirely, even if they exceed the base year by a significant amount. Additionally, the "Gross Up Cap Clause" places a maximum limit on the increase in operating expenses that the tenant is responsible for. In this case, the tenant will only be required to cover costs up to a predetermined cap, beyond which the landlord assumes responsibility for the excess amount. The purpose of including a gross up clause in a base year lease agreement is to allocate the financial burden of increasing operating expenses between the landlord and the tenant. While the specific terms and variations of the clause may vary, its objective remains consistent — ensuring a fair distribution of costs and protecting the interests of both parties involved in the lease agreement. In summary, a North Carolina gross up clause in a base year lease can take various forms such as the Standard Gross Up Clause, Full Gross Up Clause, or Gross Up Cap Clause. Each variation determines the extent to which the tenant must bear the additional operating expenses beyond the base year. Including a gross up clause provides clarity and fairness in the financial obligations of both the landlord and the tenant throughout the lease term.A North Carolina gross up clause, also known as a gross-up provision, is a stipulation that can be included in a base year lease agreement. It essentially ensures that the tenant is responsible for bearing a proportionate share of the increased operating expenses associated with the property, beyond the base year. One type of North Carolina gross up clause commonly used in a base year lease is the "Standard Gross Up Clause." This clause requires the tenant to pay a higher portion of operating expenses when they exceed the base year amount. The gross-up calculation is typically based on a predetermined percentage, such as the tenant's proportionate share of the total rentable square footage. Another variation is the "Full Gross Up Clause," where the tenant is obliged to pay their proportionate share of the increased operating expenses without any limitation. This clause ensures that the tenant covers these expenses entirely, even if they exceed the base year by a significant amount. Additionally, the "Gross Up Cap Clause" places a maximum limit on the increase in operating expenses that the tenant is responsible for. In this case, the tenant will only be required to cover costs up to a predetermined cap, beyond which the landlord assumes responsibility for the excess amount. The purpose of including a gross up clause in a base year lease agreement is to allocate the financial burden of increasing operating expenses between the landlord and the tenant. While the specific terms and variations of the clause may vary, its objective remains consistent — ensuring a fair distribution of costs and protecting the interests of both parties involved in the lease agreement. In summary, a North Carolina gross up clause in a base year lease can take various forms such as the Standard Gross Up Clause, Full Gross Up Clause, or Gross Up Cap Clause. Each variation determines the extent to which the tenant must bear the additional operating expenses beyond the base year. Including a gross up clause provides clarity and fairness in the financial obligations of both the landlord and the tenant throughout the lease term.
