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 Oklahoma Gross up Clause is a significant component that should be incorporated into an Expense Stop Stipulated Base or Office Net Lease in Oklahoma. This clause ensures fairness and transparency in sharing building operating expenses among tenants. In a commercial lease agreement, landlords allocate a certain portion of the building operating expenses to the tenants. This allocation is typically based on a predetermined expense stop, representing the maximum amount that a tenant is responsible for paying towards the operating expenses. However, in situations where the actual expenses exceed the expense stop, the Oklahoma Gross up Clause comes into play. The purpose of the Oklahoma Gross up Clause is to ensure that tenants are not unfairly burdened with disproportionate expenses. This clause stipulates that if the total building occupancy falls below a certain level, typically 95%, the landlord has the right to "gross up" the operating expenses. Grossing up means calculating the expenses as if the building were fully occupied, regardless of the actual occupancy rate. By implementing the Oklahoma Gross up Clause, landlords can prevent a scenario where a single tenant is responsible for paying a higher proportion of the operating expenses due to a low occupancy rate. It helps maintain a fair distribution of expenses among tenants and encourages a stable occupancy rate by sharing the costs more equitably. Different types or variations of the Oklahoma Gross up Clause can be found, depending on the specific needs and considerations of the landlord. Some variations may include limitations on the grossing up percentage or establishing a specific occupancy percentage at which grossing up becomes applicable. These adaptations allow flexibility and customization according to the unique circumstances of each lease agreement. In summary, the Oklahoma Gross up Clause is an essential provision that should be included in an Expense Stop Stipulated Base or Office Net Lease. It ensures fairness by redistributing operating expenses if the building occupancy falls below a certain level, preventing tenants from shouldering an excessive burden. With different types and variations available, landlords can tailor the clause to suit the requirements of their specific lease agreements.The Oklahoma Gross up Clause is a significant component that should be incorporated into an Expense Stop Stipulated Base or Office Net Lease in Oklahoma. This clause ensures fairness and transparency in sharing building operating expenses among tenants. In a commercial lease agreement, landlords allocate a certain portion of the building operating expenses to the tenants. This allocation is typically based on a predetermined expense stop, representing the maximum amount that a tenant is responsible for paying towards the operating expenses. However, in situations where the actual expenses exceed the expense stop, the Oklahoma Gross up Clause comes into play. The purpose of the Oklahoma Gross up Clause is to ensure that tenants are not unfairly burdened with disproportionate expenses. This clause stipulates that if the total building occupancy falls below a certain level, typically 95%, the landlord has the right to "gross up" the operating expenses. Grossing up means calculating the expenses as if the building were fully occupied, regardless of the actual occupancy rate. By implementing the Oklahoma Gross up Clause, landlords can prevent a scenario where a single tenant is responsible for paying a higher proportion of the operating expenses due to a low occupancy rate. It helps maintain a fair distribution of expenses among tenants and encourages a stable occupancy rate by sharing the costs more equitably. Different types or variations of the Oklahoma Gross up Clause can be found, depending on the specific needs and considerations of the landlord. Some variations may include limitations on the grossing up percentage or establishing a specific occupancy percentage at which grossing up becomes applicable. These adaptations allow flexibility and customization according to the unique circumstances of each lease agreement. In summary, the Oklahoma Gross up Clause is an essential provision that should be included in an Expense Stop Stipulated Base or Office Net Lease. It ensures fairness by redistributing operating expenses if the building occupancy falls below a certain level, preventing tenants from shouldering an excessive burden. With different types and variations available, landlords can tailor the clause to suit the requirements of their specific lease agreements.
