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 Tennessee Clause for Grossing Up the Tenant Proportionate Share is an important aspect of commercial leasing agreements in Tennessee. It involves the adjustment of a tenant's proportionate share of expenses in situations where the property is not fully occupied. One type of Tennessee Clause for Grossing Up the Tenant Proportionate Share is the "Gross-Up Provision." This provision allows the landlord to calculate the tenant's share of expenses as if the property were fully leased, even if it is not. This ensures that the tenant pays their fair share of expenses based on the property's maximum potential occupancy. Another type of Tennessee Clause for Grossing Up the Tenant Proportionate Share is the "Operating Expense Clause." This clause outlines the expenses that can be included in the gross-up calculation. Typically, these expenses may include property management fees, repairs and maintenance, insurance premiums, property taxes, and utilities. Furthermore, the "Base Year Provision" is another type of Tennessee Clause for Grossing Up the Tenant Proportionate Share. This provision establishes a base year during which the expenses are determined and used as a reference point for subsequent years. Any increase in expenses beyond the base year will be proportionately distributed among the tenants. The purpose of these Tennessee Clauses for Grossing Up the Tenant Proportionate Share is to ensure fairness in the allocation of expenses among tenants, regardless of the property's occupancy rate. By implementing a gross-up calculation, landlords can avoid burdening fully occupied tenants with a higher proportionate share of expenses due to vacancies. In conclusion, the Tennessee Clause for Grossing Up the Tenant Proportionate Share is an essential element of commercial leasing agreements in Tennessee. It encompasses various provisions, including the Gross-Up Provision, Operating Expense Clause, and Base Year Provision, all aimed at fairly allocating expenses among tenants. Implementing these clauses ensures transparency and balance in the financial obligations of both landlords and tenants in commercial real estate leases.
