Virgin Islands Clause for Grossing Up the Tenant Proportionate Share

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Multi-State
Control #:
US-OL709
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Description

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 Virgin Islands Clause for Grossing Up the Tenant Proportionate Share is a specific provision that is commonly found in commercial lease agreements. This clause ensures that the tenant's proportionate share of expenses, such as taxes, insurance, or maintenance costs, is accurately adjusted and calculated to account for any gross-up. The purpose of the Virgin Islands Clause for Grossing Up the Tenant Proportionate Share is to ensure fairness and accuracy when distributing expenses among multiple tenants in a commercial property. The clause typically outlines the method of calculation, determining how the tenant's proportionate share is determined, and how it is adjusted to account for any gross-up. When it comes to different types of Virgin Islands Clauses for Grossing Up the Tenant Proportionate Share, there may not be specific categorizations or variations unique to the Virgin Islands. However, the general concept and application of the clause may vary depending on the specific lease agreement or jurisdiction. Some relevant keywords that can be associated with a discussion on this topic include: — Virgin IslandClausus— - Commercial lease agreement — Tenant proportionatstarar— - Gross-up provisions — Expense distributio— - Tax and insurance allocation — Maintenance cost— - Fairness and accuracy — Method of calculatio— - Adjustments for gross-up To further understand the specifics of the Virgin Islands Clause for Grossing Up the Tenant Proportionate Share, it is recommended to consult with legal professionals or refer to applicable laws and regulations in the Virgin Islands.

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FAQ

up is an additional amount of money added to a payment to cover the income taxes the recipient will owe on the payment. Grossing up is most often done for onetime payments, such as reimbursements for relocation expenses or bonuses.

Correctly drafted, a gross up provision relates only to Operating Expenses that ?vary with occupancy??so called ?variable? expenses. Variable expenses are those expenses that will go up or down depending on the number of tenants in the Building, such as utilities, trash removal, management fees and janitorial services.

So, what is a gross-up provision? Simply stated, the concept of ?gross up provision? stipulates that if a building has significant vacancy, the landlord can estimate what the variable operating expense would have been had the building been fully occupied, and charge the tenants their pro-rata share of that cost.

What Does Gross-Up Mean? Gross-up is additional money an employer pays an employee to offset any additional income taxes (Social Security, Medicare, etc.) an employee would owe the IRS when that employee receives a company-provided cash benefit, such as relocation expenses.

Grossing Up is a process for calculating a tenant's share of a building's variable operating expenses, where the expenses are increased for expense recovery purposes, or Grossed Up, to what they would be if the building's occupancy remained at a specific level, typically 95%- 100%.

Correctly drafted, a gross up provision relates only to Operating Expenses that ?vary with occupancy??so called ?variable? expenses. Variable expenses are those expenses that will go up or down depending on the number of tenants in the Building, such as utilities, trash removal, management fees and janitorial services.

Also known as tenant's pro rata share. The portion of a building occupied by the tenant expressed as a percentage. When a tenant is responsible for paying its proportionate share of the landlord's costs for the building, such as operating expenses and real estate taxes, the tenant pays this amount over a base year.

Simply stated, the concept of ?gross up provision? stipulates that if a building has significant vacancy, the landlord can estimate what the variable operating expense would have been had the building been fully occupied, and charge the tenants their pro-rata share of that cost.

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How to fill out Clause For Grossing Up The Tenant Proportionate Share? When it comes to drafting a legal document, it's better to leave it to the professionals. If the building becomes fully occupied in a later year, the tenant's proportionate share will be calculated using the increase in operating expenses which ...May 19, 2022 — Let's say a tenant moves into a new building that is only partially occupied, with a lease that doesn't contain a gross-up clause. If the operating expenses were not “grossed up,” each tenant would have to pay its proportionate share of the $100,000 operating expenses, or $10,000 for each ... Sep 26, 2019 — $100.00, then each of the four (4) tenants would be charged for their proportionate (25%) share of the CAM expenses—i.e., $25.00 each. Mar 4, 2009 — Commercial leases often contain gross-up provisions relating to the calculation of the tenant's share of operating costs and realty taxes. Aug 18, 2020 — If a lease does not include a gross-up provision, the actual variable operating costs will be allocated proportionately to the remaining tenants ... Apr 12, 2019 — “Tenant's proportionate share means an amount determined by multiplying operating costs for the fiscal year by a fraction having as its ... Aug 9, 2023 — Without Gross-Up Provision: Each tenant would pay its pro-rata share of the total operating expenses, which is $10,000 ($7,500 for fixed ... May 4, 2020 — Without a gross-up provision, each tenant would pay fees of $12,500 made up of $10,000 fixed and $2,500 variable based on their 5% share. In ...

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Virgin Islands Clause for Grossing Up the Tenant Proportionate Share