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.
A North Dakota Clause for Grossing Up the Tenant Proportionate Share is a provision commonly found in commercial leases in the state of North Dakota. This clause is specifically designed to ensure that tenants are responsible for their proportionate share of operating expenses, even if the landlord experiences a decrease in income due to vacancies or other factors. In a commercial lease, the tenant's proportionate share refers to their portion of the total operating expenses of the property, such as utilities, maintenance, insurance, and property taxes. The North Dakota Clause for Grossing Up the Tenant Proportionate Share is implemented to protect the landlord's financial interests and maintain a fair distribution of expenses among all tenants. When there is a vacancy or a decrease in income from other tenants, the landlord may experience difficulty in covering the property's operating expenses fully. To address this situation, the North Dakota Clause for Grossing Up the Tenant Proportionate Share allows the landlord to "gross up" the tenant's share of operating expenses to compensate for any shortfall in income. This means that the tenant's proportionate share is adjusted to ensure that the landlord receives the full amount of operating expenses, regardless of any vacancies or decreased income. The adjustment is typically based on a formula that takes into account the actual income received by the landlord and the expenses incurred. Different types of North Dakota Clauses for Grossing Up the Tenant Proportionate Share may include variations in the specific calculation method used to determine the adjustment. These variations may depend on factors such as the overall financial health of the property, the lease term, and the specific negotiation between the landlord and the tenant. Some common types of North Dakota Clauses for Grossing Up the Tenant Proportionate Share include: 1. Flat Rate Adjustment: In this type of clause, the landlord applies a fixed adjustment rate to the tenant's proportionate share regardless of the actual income received. This method simplifies the calculation process and provides a predictable expense for the tenant. 2. Variable Adjustment: This type of clause incorporates a more flexible approach, where the adjustment rate is based on a percentage of the actual income received by the landlord. The adjustment may vary annually or periodically, allowing the tenant's proportionate share to fluctuate with the property's performance. 3. Net Income Adjustment: Some North Dakota Clauses for Grossing Up the Tenant Proportionate Share may consider the net income of the property instead of the gross income. The adjustment is calculated based on the expenses deducted from the income, ensuring that the tenant contributes their fair share after deducting expenses from the landlord's side. It is important for both landlords and tenants to thoroughly understand the specific North Dakota Clause for Grossing Up the Tenant Proportionate Share included in their lease agreement. Consulting with a real estate attorney or experienced professional can help parties negotiate and draft a fair clause that aligns with their respective interests and legal requirements.
