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 North Carolina Clause for Grossing Up the Tenant Proportionate Share is a provision commonly included in commercial lease agreements in the state. It is designed to ensure that the tenant pays a fair share of operating expenses for the building in which they lease space. In North Carolina, there are two primary types of clauses for grossing up the tenant proportionate share: the Fixed Percentage Clause and the Variable Percentage Clause. 1. Fixed Percentage Clause: This type of clause establishes a specific percentage by which the tenant's proportionate share of operating expenses will be increased annually. For example, if the fixed percentage is set at 3%, the tenant's share will be increased by 3% each year to account for rising expenses such as property taxes, insurance, utilities, and maintenance costs. 2. Variable Percentage Clause: Unlike the fixed percentage clause, the variable percentage clause allows for adjustments in the tenant's proportionate share based on changes in the building's operating expenses. The exact method of calculation may vary, but it typically involves comparing the actual expenses incurred during a specific period (e.g., the previous year) with a base year. If the expenses exceed a predetermined level, the tenant's share is grossed up accordingly. The purpose of including these clauses in a lease agreement is to provide a mechanism for equitable distribution of the building's operating expenses among all tenants. By factoring in potential increases in expenses over time, the landlord ensures that the tenant's share remains proportional and fair throughout the lease term. It's important for both landlords and tenants to carefully review and understand the specific terms and provisions of the North Carolina Clause for Grossing Up the Tenant Proportionate Share before entering into a lease agreement. Additionally, seeking legal advice can help ensure that the clause is drafted appropriately and meets the needs and expectations of both parties.
The North Carolina Clause for Grossing Up the Tenant Proportionate Share is a provision commonly included in commercial lease agreements in the state. It is designed to ensure that the tenant pays a fair share of operating expenses for the building in which they lease space. In North Carolina, there are two primary types of clauses for grossing up the tenant proportionate share: the Fixed Percentage Clause and the Variable Percentage Clause. 1. Fixed Percentage Clause: This type of clause establishes a specific percentage by which the tenant's proportionate share of operating expenses will be increased annually. For example, if the fixed percentage is set at 3%, the tenant's share will be increased by 3% each year to account for rising expenses such as property taxes, insurance, utilities, and maintenance costs. 2. Variable Percentage Clause: Unlike the fixed percentage clause, the variable percentage clause allows for adjustments in the tenant's proportionate share based on changes in the building's operating expenses. The exact method of calculation may vary, but it typically involves comparing the actual expenses incurred during a specific period (e.g., the previous year) with a base year. If the expenses exceed a predetermined level, the tenant's share is grossed up accordingly. The purpose of including these clauses in a lease agreement is to provide a mechanism for equitable distribution of the building's operating expenses among all tenants. By factoring in potential increases in expenses over time, the landlord ensures that the tenant's share remains proportional and fair throughout the lease term. It's important for both landlords and tenants to carefully review and understand the specific terms and provisions of the North Carolina Clause for Grossing Up the Tenant Proportionate Share before entering into a lease agreement. Additionally, seeking legal advice can help ensure that the clause is drafted appropriately and meets the needs and expectations of both parties.
