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 New Jersey Gross Up Clause in a Base Year Lease is a specific provision that ensures fairness and accuracy in determining the tenant's share of operating expenses, such as taxes, insurance, and maintenance costs, especially in multi-tenant commercial properties. This clause protects both the landlord and the tenant by accounting for variations in property expenses over time. One type of New Jersey Gross Up Clause is the "Fixed Expense Stop Gross Up Clause." This clause establishes a specific amount or percentage that serves as a cap on the expenses the landlord can recover from the tenant. If the actual expenses exceed this limit, the landlord cannot pass the excess costs on to the tenant, thus providing more certainty and predictability in financial obligations. Another type is the "Expense Reconciliation Gross Up Clause." Under this clause, the tenant pays a proportionate share of the property's operating expenses based on a certain base year. The base year is typically the first year of the lease term or the year when expenses are relatively stable. The clause allows for adjustments in subsequent years to ensure the tenant's share accurately reflects changes in the property's expenses. Furthermore, the "Expense Index Gross Up Clause" is another possible variation. This clause accounts for inflation or increases in expenses over time. It uses an index, such as the Consumer Price Index (CPI), to adjust the tenant's share of expenses accordingly. By incorporating an expense index, this clause prevents the tenant's proportionate share from being disproportionately affected by rising costs. The purpose of utilizing a New Jersey Gross Up Clause in a Base Year Lease is to provide fairness and transparency in cost-sharing among tenants. This ensures that each tenant pays their fair share of expenses while accounting for fluctuations in operating costs. By precisely delineating the gross up clause used in a base year lease, it allows for clear expectations and minimizes disputes concerning expenses throughout the lease term.
A New Jersey Gross Up Clause in a Base Year Lease is a specific provision that ensures fairness and accuracy in determining the tenant's share of operating expenses, such as taxes, insurance, and maintenance costs, especially in multi-tenant commercial properties. This clause protects both the landlord and the tenant by accounting for variations in property expenses over time. One type of New Jersey Gross Up Clause is the "Fixed Expense Stop Gross Up Clause." This clause establishes a specific amount or percentage that serves as a cap on the expenses the landlord can recover from the tenant. If the actual expenses exceed this limit, the landlord cannot pass the excess costs on to the tenant, thus providing more certainty and predictability in financial obligations. Another type is the "Expense Reconciliation Gross Up Clause." Under this clause, the tenant pays a proportionate share of the property's operating expenses based on a certain base year. The base year is typically the first year of the lease term or the year when expenses are relatively stable. The clause allows for adjustments in subsequent years to ensure the tenant's share accurately reflects changes in the property's expenses. Furthermore, the "Expense Index Gross Up Clause" is another possible variation. This clause accounts for inflation or increases in expenses over time. It uses an index, such as the Consumer Price Index (CPI), to adjust the tenant's share of expenses accordingly. By incorporating an expense index, this clause prevents the tenant's proportionate share from being disproportionately affected by rising costs. The purpose of utilizing a New Jersey Gross Up Clause in a Base Year Lease is to provide fairness and transparency in cost-sharing among tenants. This ensures that each tenant pays their fair share of expenses while accounting for fluctuations in operating costs. By precisely delineating the gross up clause used in a base year lease, it allows for clear expectations and minimizes disputes concerning expenses throughout the lease term.
