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 Wisconsin Clause for Grossing Up the Tenant Proportionate Share is a legal provision commonly found in commercial lease agreements. It serves to ensure that tenants pay their fair share of expenses related to the maintenance, operation, and taxation of a property. The clause typically calculates and adjusts the tenant's proportionate share of expenses in a manner that reflects the leased space's fair market value. This is achieved through a "grossing up" process which accounts for any vacancies or incomplete areas within the property. The Wisconsin Clause for Grossing Up the Tenant Proportionate Share can be further categorized into different types based on the specific methodology used to calculate the tenant's share of expenses. These types include: 1. Direct Expense Clause: This type of clause considers only the tenant's proportionate share of direct expenses, such as utilities, repairs, and maintenance related to the leased space. Indirect expenses, such as overall building maintenance or insurance, are excluded from the calculation. 2. Base Year Expense Clause: In this type of clause, the tenant's proportionate share is calculated based on a specified base year. The base year is typically the first full year of the lease, during which the actual expenses incurred by the landlord are determined. The tenant's share is then adjusted in subsequent years based on any increase or decrease in expenses compared to the base year. 3. Expense Stop Clause: This type of clause sets a predetermined limit or cap on the expenses for which the tenant is responsible. Once the expenses exceed the specified stop amount, the additional costs are borne solely by the landlord. This provides a sense of cost certainty for tenants while ensuring the landlord doesn't bear the burden of excessive expenses. 4. Pro Rata Sharing Clause: This type of clause allocates expenses among tenants based on their respective leased areas as a percentage of the total leasable space in the building. Each tenant pays their share proportional to the size of their rented space. It's important for both landlords and tenants to understand the specific terms and implications of the Wisconsin Clause for Grossing Up the Tenant Proportionate Share within a commercial lease agreement. Seeking legal advice and careful negotiation can help ensure that the provision is fair and well-suited to the needs of all parties involved.
The Wisconsin Clause for Grossing Up the Tenant Proportionate Share is a legal provision commonly found in commercial lease agreements. It serves to ensure that tenants pay their fair share of expenses related to the maintenance, operation, and taxation of a property. The clause typically calculates and adjusts the tenant's proportionate share of expenses in a manner that reflects the leased space's fair market value. This is achieved through a "grossing up" process which accounts for any vacancies or incomplete areas within the property. The Wisconsin Clause for Grossing Up the Tenant Proportionate Share can be further categorized into different types based on the specific methodology used to calculate the tenant's share of expenses. These types include: 1. Direct Expense Clause: This type of clause considers only the tenant's proportionate share of direct expenses, such as utilities, repairs, and maintenance related to the leased space. Indirect expenses, such as overall building maintenance or insurance, are excluded from the calculation. 2. Base Year Expense Clause: In this type of clause, the tenant's proportionate share is calculated based on a specified base year. The base year is typically the first full year of the lease, during which the actual expenses incurred by the landlord are determined. The tenant's share is then adjusted in subsequent years based on any increase or decrease in expenses compared to the base year. 3. Expense Stop Clause: This type of clause sets a predetermined limit or cap on the expenses for which the tenant is responsible. Once the expenses exceed the specified stop amount, the additional costs are borne solely by the landlord. This provides a sense of cost certainty for tenants while ensuring the landlord doesn't bear the burden of excessive expenses. 4. Pro Rata Sharing Clause: This type of clause allocates expenses among tenants based on their respective leased areas as a percentage of the total leasable space in the building. Each tenant pays their share proportional to the size of their rented space. It's important for both landlords and tenants to understand the specific terms and implications of the Wisconsin Clause for Grossing Up the Tenant Proportionate Share within a commercial lease agreement. Seeking legal advice and careful negotiation can help ensure that the provision is fair and well-suited to the needs of all parties involved.
