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.
A Puerto Rico Clause for Grossing Up the Tenant Proportionate Share refers to a provision commonly found in commercial lease agreements in Puerto Rico. This clause outlines the methods and conditions under which the tenant's proportionate share of operating expenses will be adjusted or "grossed up" to account for any increase in real estate taxes during the lease term. The purpose of this clause is to protect the tenant from unexpected costs resulting from an increase in property taxes. It ensures that the tenant's proportionate share of operating expenses remains consistent despite any fluctuations in tax rates. By including this clause, both landlords and tenants can have a clear understanding of their financial responsibilities throughout the lease agreement. There are different types of Puerto Rico Clause for Grossing Up the Tenant Proportionate Share that can be implemented based on the lease negotiation. These types include: 1. Fixed Increase: This type involves a predetermined fixed percentage increase in the tenant's proportionate share of operating expenses each year. For example, if the property taxes increase by 5%, the tenant's share automatically increases by the same percentage. 2. CPI Adjustment: With this type of clause, the tenant's proportionate share of operating expenses is adjusted based on the Consumer Price Index (CPI). If the CPI increases by a certain percentage, the tenant's share is proportionally adjusted accordingly. 3. Negotiated Increase: In some cases, the lease agreement may allow for a negotiated increase in the tenant's proportionate share of operating expenses. This type of clause gives the parties involved the flexibility to reach an agreement on an acceptable increase based on market conditions and other factors. It's important for both landlords and tenants to carefully review and negotiate the specific terms of the Puerto Rico Clause for Grossing Up the Tenant Proportionate Share to ensure fairness and clarity. It is recommended to consult with legal professionals or real estate experts familiar with Puerto Rico's leasing laws to ensure that the clause accurately reflects the intended intentions and protects both parties' interests.
