This office lease clause should be used in an expense stop, stipulated base or office net lease. 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 for each lease year to determine what the building operating costs. Such an adjustment shall be made by the landlord increasing the variable components of such variable costs included in the building operating costs which vary based on the level of occupancy of the building.
The Ohio Gross Up Clause is an important provision that should be included in an Expense Stop Stipulated Base or Office Net Lease agreement. This clause addresses the issue of operating expenses in commercial leases and ensures fairness between the landlord and tenant. Keywords: Ohio Gross Up Clause, Expense Stop, Stipulated Base, Office Net Lease, operating expenses. What is the Ohio Gross Up Clause? The Ohio Gross Up Clause is a specific clause included in a commercial lease agreement that allows the landlord to adjust the operating expenses in order to account for vacant or unleashed spaces within the building. This clause ensures that the tenant is not burdened with an unfair share of the expenses due to other unoccupied areas. Types of Ohio Gross Up Clauses: 1. Gross Up Clause based on Rentable Square Footage: Under this type of Gross Up Clause, the landlord will calculate the operating expenses based on the proportionate share of the rentable square footage leased by the tenant. This means that the tenant's share of the expenses will only be calculated based on the space they occupy, excluding any vacant or unleashed areas. 2. Gross Up Clause based on Occupancy: In this type of Gross Up Clause, the operating expenses are adjusted based on the actual occupancy level of the building. The landlord will calculate the expenses using a predetermined occupancy rate, which may be based on historical data or industry standards. This ensures that the tenant is not responsible for the expenses of unoccupied spaces. Importance of Ohio Gross Up Clause: Including the Ohio Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease agreement is crucial for both landlords and tenants. It promotes fairness by allocating operating expenses accurately, protecting the tenant from shouldering costs for vacant spaces. Additionally, this clause provides clarity and transparency, reducing the chances of disputes arising over expense allocations. In conclusion, the Ohio Gross Up Clause is an essential provision that should be incorporated into Expense Stop Stipulated Base or Office Net Lease agreements. By utilizing this clause, both landlords and tenants can ensure equitable sharing of operating expenses and maintain a harmonious landlord-tenant relationship.The Ohio Gross Up Clause is an important provision that should be included in an Expense Stop Stipulated Base or Office Net Lease agreement. This clause addresses the issue of operating expenses in commercial leases and ensures fairness between the landlord and tenant. Keywords: Ohio Gross Up Clause, Expense Stop, Stipulated Base, Office Net Lease, operating expenses. What is the Ohio Gross Up Clause? The Ohio Gross Up Clause is a specific clause included in a commercial lease agreement that allows the landlord to adjust the operating expenses in order to account for vacant or unleashed spaces within the building. This clause ensures that the tenant is not burdened with an unfair share of the expenses due to other unoccupied areas. Types of Ohio Gross Up Clauses: 1. Gross Up Clause based on Rentable Square Footage: Under this type of Gross Up Clause, the landlord will calculate the operating expenses based on the proportionate share of the rentable square footage leased by the tenant. This means that the tenant's share of the expenses will only be calculated based on the space they occupy, excluding any vacant or unleashed areas. 2. Gross Up Clause based on Occupancy: In this type of Gross Up Clause, the operating expenses are adjusted based on the actual occupancy level of the building. The landlord will calculate the expenses using a predetermined occupancy rate, which may be based on historical data or industry standards. This ensures that the tenant is not responsible for the expenses of unoccupied spaces. Importance of Ohio Gross Up Clause: Including the Ohio Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease agreement is crucial for both landlords and tenants. It promotes fairness by allocating operating expenses accurately, protecting the tenant from shouldering costs for vacant spaces. Additionally, this clause provides clarity and transparency, reducing the chances of disputes arising over expense allocations. In conclusion, the Ohio Gross Up Clause is an essential provision that should be incorporated into Expense Stop Stipulated Base or Office Net Lease agreements. By utilizing this clause, both landlords and tenants can ensure equitable sharing of operating expenses and maintain a harmonious landlord-tenant relationship.
