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.
North Carolina Gross Up Clause for Expense Stop Stipulated Base or Office Net Lease: A Detailed Description When drafting a lease agreement for a commercial property in North Carolina, it is crucial to include a gross up clause to ensure fair allocation of expenses between the landlord and tenant. In an expense stop stipulated base or office net lease, the gross up clause establishes a mechanism for adjusting expenses during periods of occupancy fluctuation. The North Carolina gross up clause can be tailored in various ways to suit the needs of specific leases. Here are different types of gross up clauses commonly used in North Carolina: 1. Full Building Gross Up: This type of gross up clause allows for the allocation of expenses based on the total square footage of the entire building. In this scenario, the tenant's share of expenses is calculated by dividing their leased square footage by the total area of the building. 2. Tenant Gross Up: With a tenant gross up clause, expenses are allocated based on the tenant's occupied square footage only. This means that any unoccupied or common areas are excluded from the calculation. This type of gross up clause is often found in multi-tenant buildings where each tenant pays for their own dedicated space separately. 3. Expense Reconciliation Gross Up: In this type of gross up clause, expenses are initially allocated based on an estimate or cap known as the "expense stop." At the end of the lease term or a predetermined period, the actual expenses incurred are reconciled against the expense stop. If the expenses exceed the expense stop, the tenant may be responsible for their portion of the additional costs. This type of gross up clause adds a layer of flexibility in managing expense fluctuations. 4. Prorated Gross Up: A prorated gross up clause allocates expenses based on the duration of occupancy during a particular expense period. For example, if a tenant moves into the property midway through the year, their share of expenses will be prorated based on the number of months they occupied the space relative to the total duration of the expense period. It is important to consult legal professionals familiar with North Carolina real estate laws and lease regulations to ensure the appropriate gross up clause is incorporated into the expense stop stipulated base or office net lease. The specific language and terms used in these clauses may vary depending on the unique circumstances of the lease and the preferences of the parties involved. Keywords: North Carolina, gross up clause, expense stop, stipulated base, office net lease, commercial property, allocation of expenses, fair, fluctuation, full building gross up, tenant gross up, expense reconciliation gross up, prorated gross up, estimate, cap, lease term, legal professionals, real estate laws, lease regulations.North Carolina Gross Up Clause for Expense Stop Stipulated Base or Office Net Lease: A Detailed Description When drafting a lease agreement for a commercial property in North Carolina, it is crucial to include a gross up clause to ensure fair allocation of expenses between the landlord and tenant. In an expense stop stipulated base or office net lease, the gross up clause establishes a mechanism for adjusting expenses during periods of occupancy fluctuation. The North Carolina gross up clause can be tailored in various ways to suit the needs of specific leases. Here are different types of gross up clauses commonly used in North Carolina: 1. Full Building Gross Up: This type of gross up clause allows for the allocation of expenses based on the total square footage of the entire building. In this scenario, the tenant's share of expenses is calculated by dividing their leased square footage by the total area of the building. 2. Tenant Gross Up: With a tenant gross up clause, expenses are allocated based on the tenant's occupied square footage only. This means that any unoccupied or common areas are excluded from the calculation. This type of gross up clause is often found in multi-tenant buildings where each tenant pays for their own dedicated space separately. 3. Expense Reconciliation Gross Up: In this type of gross up clause, expenses are initially allocated based on an estimate or cap known as the "expense stop." At the end of the lease term or a predetermined period, the actual expenses incurred are reconciled against the expense stop. If the expenses exceed the expense stop, the tenant may be responsible for their portion of the additional costs. This type of gross up clause adds a layer of flexibility in managing expense fluctuations. 4. Prorated Gross Up: A prorated gross up clause allocates expenses based on the duration of occupancy during a particular expense period. For example, if a tenant moves into the property midway through the year, their share of expenses will be prorated based on the number of months they occupied the space relative to the total duration of the expense period. It is important to consult legal professionals familiar with North Carolina real estate laws and lease regulations to ensure the appropriate gross up clause is incorporated into the expense stop stipulated base or office net lease. The specific language and terms used in these clauses may vary depending on the unique circumstances of the lease and the preferences of the parties involved. Keywords: North Carolina, gross up clause, expense stop, stipulated base, office net lease, commercial property, allocation of expenses, fair, fluctuation, full building gross up, tenant gross up, expense reconciliation gross up, prorated gross up, estimate, cap, lease term, legal professionals, real estate laws, lease regulations.
