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 New York Clause for Grossing Up the Tenant Proportionate Share is an important aspect of commercial lease agreements in New York City. It pertains to the tenant's responsibility for covering their proportionate share of operating expenses, such as property taxes, insurance, and maintenance costs, in addition to their base rent. This clause ensures that tenants fairly contribute to the overall expenses associated with the property they are leasing. The purpose of the gross-up provision is to account for potential variations in occupancy rates within a building, ensuring that landlords receive sufficient funds to cover the operating expenses regardless of whether the building is fully occupied or not. There are several types of New York Clauses for Grossing Up the Tenant Proportionate Share, each serving different purposes. Some common types include: 1. Full Gross-Up Clause: This type of clause requires the tenant to pay their share of operating expenses based on the total occupied space in the building, assuming full occupancy. It takes into account any unfilled spaces within the property and spreads the costs evenly across all tenants. 2. Partial Gross-Up Clause: This clause applies when the building has a substantial vacancy rate. It allows the landlord to bill the tenants at a higher rate per square foot to cover the loss of income caused by the unoccupied spaces. The tenants' proportionate share is adjusted to compensate for the decreased overall income. 3. Expense Stop Clause: An expense stop is a specific dollar amount or threshold above which the tenant is not responsible for additional operating expenses. Once the expenses exceed the predetermined amount, the landlord assumes the additional costs. This clause protects tenants from unpredictable and significantly increased operating expenses. 4. CPI Adjustment Clause: Commonly used in conjunction with the gross-up provision, the CPI (Consumer Price Index) adjustment clause allows for annual adjustments to the tenant's proportionate share based on the rate of inflation. This ensures that the tenant's obligations align with the changes in the cost of living and operating expenses over time. It is crucial for both landlords and tenants to fully understand and negotiate the New York Clause for Grossing Up the Tenant Proportionate Share before entering into a lease agreement. These clauses can have a significant impact on a tenant's financial obligations and should be carefully considered ensuring fairness and transparency in the lease arrangement.The New York Clause for Grossing Up the Tenant Proportionate Share is an important aspect of commercial lease agreements in New York City. It pertains to the tenant's responsibility for covering their proportionate share of operating expenses, such as property taxes, insurance, and maintenance costs, in addition to their base rent. This clause ensures that tenants fairly contribute to the overall expenses associated with the property they are leasing. The purpose of the gross-up provision is to account for potential variations in occupancy rates within a building, ensuring that landlords receive sufficient funds to cover the operating expenses regardless of whether the building is fully occupied or not. There are several types of New York Clauses for Grossing Up the Tenant Proportionate Share, each serving different purposes. Some common types include: 1. Full Gross-Up Clause: This type of clause requires the tenant to pay their share of operating expenses based on the total occupied space in the building, assuming full occupancy. It takes into account any unfilled spaces within the property and spreads the costs evenly across all tenants. 2. Partial Gross-Up Clause: This clause applies when the building has a substantial vacancy rate. It allows the landlord to bill the tenants at a higher rate per square foot to cover the loss of income caused by the unoccupied spaces. The tenants' proportionate share is adjusted to compensate for the decreased overall income. 3. Expense Stop Clause: An expense stop is a specific dollar amount or threshold above which the tenant is not responsible for additional operating expenses. Once the expenses exceed the predetermined amount, the landlord assumes the additional costs. This clause protects tenants from unpredictable and significantly increased operating expenses. 4. CPI Adjustment Clause: Commonly used in conjunction with the gross-up provision, the CPI (Consumer Price Index) adjustment clause allows for annual adjustments to the tenant's proportionate share based on the rate of inflation. This ensures that the tenant's obligations align with the changes in the cost of living and operating expenses over time. It is crucial for both landlords and tenants to fully understand and negotiate the New York Clause for Grossing Up the Tenant Proportionate Share before entering into a lease agreement. These clauses can have a significant impact on a tenant's financial obligations and should be carefully considered ensuring fairness and transparency in the lease arrangement.
