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 Dakota Gross Up Clause is a provision commonly used in commercial leases, specifically in the context of base year leases. This clause ensures that the tenant pays their fair share of operating expenses, such as taxes, insurance, and maintenance costs, based on the proportionate share of the leased space. Typically, a base year lease sets a base year upon which the operating expenses are calculated. The North Dakota Gross Up Clause is then included to account for variations in occupancy levels throughout the base year, ensuring that the tenant is not unfairly burdened by higher expenses due to vacant or unleashed space. There are different types of North Dakota Gross Up Clauses that can be utilized in a base year lease, including: 1. Pro Rata Gross Up Clause: This method calculates the tenant's share of operating expenses based on the leased square footage in relation to the total leasable area. It ensures that each tenant pays a proportionate amount regardless of fluctuations in occupancy levels. 2. Expense Increased Gross Up Clause: Instead of using the base year as a reference point, this type of clause adjusts the expenses to reflect the actual costs incurred during the lease term. It allows the tenant's payment to align with the actual expenses and prevents potential discrepancies caused by inflation or unexpected expenses. 3. Increased Costs Gross Up Clause: This clause accounts for operating expenses that exceed a predetermined threshold. If the expenses exceed a certain percentage or amount, this clause allows the landlord to increase the tenant's payments accordingly, ensuring that excessive costs are shared equitably. 4. Flat Rental Rate Gross Up Clause: In some cases, a flat rental rate gross up clause is used where operating expenses are bundled into the base rent. With this clause, the tenant pays a single, fixed amount that includes all operating expenses, eliminating the need for separate calculations and adjustments. By incorporating a North Dakota Gross Up Clause in a base year lease, both the tenant and the landlord can ensure a fair distribution of operating expenses. It helps maintain stability by preventing undue burdens on the tenant due to unpredictable fluctuations in occupancy levels or unforeseen expenses.
A North Dakota Gross Up Clause is a provision commonly used in commercial leases, specifically in the context of base year leases. This clause ensures that the tenant pays their fair share of operating expenses, such as taxes, insurance, and maintenance costs, based on the proportionate share of the leased space. Typically, a base year lease sets a base year upon which the operating expenses are calculated. The North Dakota Gross Up Clause is then included to account for variations in occupancy levels throughout the base year, ensuring that the tenant is not unfairly burdened by higher expenses due to vacant or unleashed space. There are different types of North Dakota Gross Up Clauses that can be utilized in a base year lease, including: 1. Pro Rata Gross Up Clause: This method calculates the tenant's share of operating expenses based on the leased square footage in relation to the total leasable area. It ensures that each tenant pays a proportionate amount regardless of fluctuations in occupancy levels. 2. Expense Increased Gross Up Clause: Instead of using the base year as a reference point, this type of clause adjusts the expenses to reflect the actual costs incurred during the lease term. It allows the tenant's payment to align with the actual expenses and prevents potential discrepancies caused by inflation or unexpected expenses. 3. Increased Costs Gross Up Clause: This clause accounts for operating expenses that exceed a predetermined threshold. If the expenses exceed a certain percentage or amount, this clause allows the landlord to increase the tenant's payments accordingly, ensuring that excessive costs are shared equitably. 4. Flat Rental Rate Gross Up Clause: In some cases, a flat rental rate gross up clause is used where operating expenses are bundled into the base rent. With this clause, the tenant pays a single, fixed amount that includes all operating expenses, eliminating the need for separate calculations and adjustments. By incorporating a North Dakota Gross Up Clause in a base year lease, both the tenant and the landlord can ensure a fair distribution of operating expenses. It helps maintain stability by preventing undue burdens on the tenant due to unpredictable fluctuations in occupancy levels or unforeseen expenses.
