This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share is a crucial aspect of commercial real estate leasing in the state. It involves the calculation and allocation of tax liabilities among tenants based on their proportionate share of the property. The measurement representations part requires accurate and detailed measurements of leased premises to determine the tenant's proportional share. These measurements are typically specified in the lease agreement and include the square footage of the leased space, as well as common areas, such as hallways, lobbies, and restrooms, that are shared by multiple tenants. Proportionate Share Adjustment refers to the adjustment made to reflect changes in the tenant's proportionate share of the property, which may occur due to expansion or contraction of the leased premises during the lease term. If a tenant decides to expand their space, their proportionate tax share will increase accordingly. Conversely, if they downsize, their share will decrease. The Proportionate Tax Share is the portion of property taxes that each tenant is responsible for paying based on their proportionate share of the total building area. It is calculated by multiplying the tenant's proportionate share by the total property tax for the given period, as determined by the local tax authorities. There are different types of New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share, including: 1. Base Year Proportionate Tax Share: In this type, the tax liabilities are calculated based on the tenant's proportionate share during the base year, which is typically the year in which the lease commences. Any subsequent changes in the tenant's share due to expansion or contraction are adjusted based on the base year proportionate share. 2. Yearly Adjusted Proportionate Tax Share: This type involves recalculating the tenant's proportionate tax share each year based on their current share of the property. Changes in the tax share due to expansion or contraction are adjusted annually. 3. Stepped-Up Proportionate Tax Share: This type involves incremental increases in the tenant's proportionate tax share over a specific period outlined in the lease agreement. These increases may be predetermined or negotiated based on factors such as lease term, market conditions, and potential tenant expansion. Overall, New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share is aimed at ensuring fair distribution of property tax burdens among tenants based on their occupancy and usage of the leased premises. It provides a structured methodology to calculate and adjust tax liabilities, encouraging transparency and equitable arrangements in commercial leasing.New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share is a crucial aspect of commercial real estate leasing in the state. It involves the calculation and allocation of tax liabilities among tenants based on their proportionate share of the property. The measurement representations part requires accurate and detailed measurements of leased premises to determine the tenant's proportional share. These measurements are typically specified in the lease agreement and include the square footage of the leased space, as well as common areas, such as hallways, lobbies, and restrooms, that are shared by multiple tenants. Proportionate Share Adjustment refers to the adjustment made to reflect changes in the tenant's proportionate share of the property, which may occur due to expansion or contraction of the leased premises during the lease term. If a tenant decides to expand their space, their proportionate tax share will increase accordingly. Conversely, if they downsize, their share will decrease. The Proportionate Tax Share is the portion of property taxes that each tenant is responsible for paying based on their proportionate share of the total building area. It is calculated by multiplying the tenant's proportionate share by the total property tax for the given period, as determined by the local tax authorities. There are different types of New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share, including: 1. Base Year Proportionate Tax Share: In this type, the tax liabilities are calculated based on the tenant's proportionate share during the base year, which is typically the year in which the lease commences. Any subsequent changes in the tenant's share due to expansion or contraction are adjusted based on the base year proportionate share. 2. Yearly Adjusted Proportionate Tax Share: This type involves recalculating the tenant's proportionate tax share each year based on their current share of the property. Changes in the tax share due to expansion or contraction are adjusted annually. 3. Stepped-Up Proportionate Tax Share: This type involves incremental increases in the tenant's proportionate tax share over a specific period outlined in the lease agreement. These increases may be predetermined or negotiated based on factors such as lease term, market conditions, and potential tenant expansion. Overall, New Jersey Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share is aimed at ensuring fair distribution of property tax burdens among tenants based on their occupancy and usage of the leased premises. It provides a structured methodology to calculate and adjust tax liabilities, encouraging transparency and equitable arrangements in commercial leasing.
