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 South Dakota Gross Up Clause is an important provision to consider when drafting an Expense Stop Stipulated Base or Office Net Lease in the state of South Dakota. This clause ensures that tenants are not unfairly burdened with increased operating expenses due to fluctuations in the building's occupancy. The purpose of the South Dakota Gross Up Clause is to allow landlords to include additional expenses to maintain a consistent net operating income (NOI) for the property. This helps stabilize rent prices and protects both the landlord's and tenant's interests. One common type of South Dakota Gross Up Clause is the Expense Stop Gross Up Clause. This clause states that if the total operating expenses fall below a specific threshold (referred to as the expense stop), the tenant will be responsible for paying their pro rata share of the shortfall. This ensures that the landlord receives a predetermined amount of revenue even if the operating expenses are less than expected. Another type of South Dakota Gross Up Clause is the Operating Expense Gross Up Clause. This clause allows the landlord to include additional operating expenses related to the maintenance and repair of the property. These expenses may include property taxes, insurance premiums, utility costs, common area maintenance fees, and other necessary expenses for the operation and upkeep of the building. Additionally, there may be variations of the South Dakota Gross Up Clause depending on the specific terms negotiated between the landlord and tenant. These variations may include caps on yearly expense increases, methods of calculation, or specific items that are excluded from the gross-up calculation. It is crucial for both parties to carefully review and negotiate the South Dakota Gross Up Clause to ensure a fair and reasonable allocation of expenses. Tenants should understand the impact of this clause on their lease obligations and budget accordingly, while landlords should aim for a balanced provision that assists in maintaining the property's financial stability. In conclusion, the South Dakota Gross Up Clause is an essential provision in an Expense Stop Stipulated Base or Office Net Lease. It allows landlords to stabilize rent prices and maintain a consistent NOI. By understanding the different types and variations of the South Dakota Gross Up Clause, both landlords and tenants can enter into a lease agreement that benefits both parties.The South Dakota Gross Up Clause is an important provision to consider when drafting an Expense Stop Stipulated Base or Office Net Lease in the state of South Dakota. This clause ensures that tenants are not unfairly burdened with increased operating expenses due to fluctuations in the building's occupancy. The purpose of the South Dakota Gross Up Clause is to allow landlords to include additional expenses to maintain a consistent net operating income (NOI) for the property. This helps stabilize rent prices and protects both the landlord's and tenant's interests. One common type of South Dakota Gross Up Clause is the Expense Stop Gross Up Clause. This clause states that if the total operating expenses fall below a specific threshold (referred to as the expense stop), the tenant will be responsible for paying their pro rata share of the shortfall. This ensures that the landlord receives a predetermined amount of revenue even if the operating expenses are less than expected. Another type of South Dakota Gross Up Clause is the Operating Expense Gross Up Clause. This clause allows the landlord to include additional operating expenses related to the maintenance and repair of the property. These expenses may include property taxes, insurance premiums, utility costs, common area maintenance fees, and other necessary expenses for the operation and upkeep of the building. Additionally, there may be variations of the South Dakota Gross Up Clause depending on the specific terms negotiated between the landlord and tenant. These variations may include caps on yearly expense increases, methods of calculation, or specific items that are excluded from the gross-up calculation. It is crucial for both parties to carefully review and negotiate the South Dakota Gross Up Clause to ensure a fair and reasonable allocation of expenses. Tenants should understand the impact of this clause on their lease obligations and budget accordingly, while landlords should aim for a balanced provision that assists in maintaining the property's financial stability. In conclusion, the South Dakota Gross Up Clause is an essential provision in an Expense Stop Stipulated Base or Office Net Lease. It allows landlords to stabilize rent prices and maintain a consistent NOI. By understanding the different types and variations of the South Dakota Gross Up Clause, both landlords and tenants can enter into a lease agreement that benefits both parties.
