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.
A Virginia Gross Up Clause is a provision commonly used in Expense Stop Stipulated Base or Office Net Leases to ensure that the landlord receives a predetermined amount of rent, usually on a net basis, and that the tenant covers all other operating expenses related to the property. This clause allows the landlord to "gross up" the expense reimbursement provided by the tenant to account for any increase in operating expenses due to factors beyond the landlord's control, such as changes in property taxes or insurance premiums. By utilizing this clause, the tenant is responsible for paying their proportionate share of these increased expenses in addition to the base rent. There are two main types of Virginia Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease: 1. Fixed Percentage Gross Up Clause: This type of clause establishes a fixed percentage by which the tenant will reimburse the landlord for any increase in operating expenses. For example, the lease may state that the tenant is responsible for 50% of any increase beyond the expense stop, ensuring that the landlord retains a predetermined amount of net rent. 2. CPI-Based Gross Up Clause: In this type of clause, the tenant's expense reimbursement is adjusted based on changes in the Consumer Price Index (CPI). The lease may specify that if the CPI increases by a certain percentage, the tenant's expense reimbursement will be adjusted accordingly. Both types of Virginia Gross Up Clauses serve to protect the landlord's financial interests and ensure that they are able to cover any unexpected increases in operating expenses. By including these clauses in the lease agreement, both parties can establish clear expectations regarding expense reimbursement and minimize potential disputes. In summary, a Virginia Gross Up Clause is a crucial provision in an Expense Stop Stipulated Base or Office Net Lease that enables the landlord to receive a predetermined amount of net rent while ensuring that the tenant covers all additional operating expenses. The two main types of clauses include the Fixed Percentage Gross Up Clause and the CPI-Based Gross Up Clause.
A Virginia Gross Up Clause is a provision commonly used in Expense Stop Stipulated Base or Office Net Leases to ensure that the landlord receives a predetermined amount of rent, usually on a net basis, and that the tenant covers all other operating expenses related to the property. This clause allows the landlord to "gross up" the expense reimbursement provided by the tenant to account for any increase in operating expenses due to factors beyond the landlord's control, such as changes in property taxes or insurance premiums. By utilizing this clause, the tenant is responsible for paying their proportionate share of these increased expenses in addition to the base rent. There are two main types of Virginia Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease: 1. Fixed Percentage Gross Up Clause: This type of clause establishes a fixed percentage by which the tenant will reimburse the landlord for any increase in operating expenses. For example, the lease may state that the tenant is responsible for 50% of any increase beyond the expense stop, ensuring that the landlord retains a predetermined amount of net rent. 2. CPI-Based Gross Up Clause: In this type of clause, the tenant's expense reimbursement is adjusted based on changes in the Consumer Price Index (CPI). The lease may specify that if the CPI increases by a certain percentage, the tenant's expense reimbursement will be adjusted accordingly. Both types of Virginia Gross Up Clauses serve to protect the landlord's financial interests and ensure that they are able to cover any unexpected increases in operating expenses. By including these clauses in the lease agreement, both parties can establish clear expectations regarding expense reimbursement and minimize potential disputes. In summary, a Virginia Gross Up Clause is a crucial provision in an Expense Stop Stipulated Base or Office Net Lease that enables the landlord to receive a predetermined amount of net rent while ensuring that the tenant covers all additional operating expenses. The two main types of clauses include the Fixed Percentage Gross Up Clause and the CPI-Based Gross Up Clause.
