This office lease clause should be used in a base year lease. This form states that 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 in accordance with industry standards of the building operating costs. This amount shall be deemed to be the amount of building operating costs for the year.
What is a West Virginia Gross Up Clause in a Base Year Lease? A West Virginia Gross Up Clause is a provision commonly used in base year leases, particularly in the state of West Virginia. This clause relates to the calculation and adjustment of operating expenses within a lease agreement. Operating expenses typically include costs such as maintenance, repairs, insurance, and taxes associated with the leased property. The purpose of a Gross Up Clause is to ensure fairness and consistency in determining the tenant's share of operating expenses. Typically, the lease agreement will specify a base year, which is usually the calendar year in which the lease commences. The base year serves as a reference point for calculating the tenant's share of operating expenses throughout the lease term. During the base year, the landlord will determine the actual operating expenses incurred for the leased property. Once these costs are established, the Gross Up Clause will come into play. The clause allows for the adjustment of operating expenses to reflect what they would have been if the property had been fully occupied throughout the base year. There are different types of West Virginia Gross Up Clauses that can be used in a base year lease. These include: 1. Full Gross Up Clause: Under this type of clause, the operating expenses are adjusted to reflect what they would have been if the property had been fully occupied during the base year, regardless of the actual occupancy levels. This means that the tenant's share of operating expenses may increase proportionately to account for a hypothetical full occupancy scenario. 2. Partial Gross Up Clause: This clause allows for the adjustment of operating expenses based on the actual occupancy levels during the base year. The adjustment is made to account for the difference between the actual occupancy and the hypothetical full occupancy. The tenant's share of operating expenses will increase, but not to the extent as under a full gross-up clause. 3. No Gross Up Clause: In some cases, a base year lease may not include a gross-up clause. In such instances, the tenant's share of operating expenses remains fixed and is not adjusted for occupancy levels during the base year. This arrangement can be beneficial for the tenant as their contribution remains consistent throughout the lease term. In conclusion, a West Virginia Gross Up Clause in a base year lease is a provision used to adjust operating expenses based on hypothetical full occupancy levels during the base year. These clauses ensure fairness and consistency in determining a tenant's share of operating expenses. Different types of gross-up clauses, such as full gross-up, partial gross-up, or no gross-up, may be utilized depending on the specific lease agreement.What is a West Virginia Gross Up Clause in a Base Year Lease? A West Virginia Gross Up Clause is a provision commonly used in base year leases, particularly in the state of West Virginia. This clause relates to the calculation and adjustment of operating expenses within a lease agreement. Operating expenses typically include costs such as maintenance, repairs, insurance, and taxes associated with the leased property. The purpose of a Gross Up Clause is to ensure fairness and consistency in determining the tenant's share of operating expenses. Typically, the lease agreement will specify a base year, which is usually the calendar year in which the lease commences. The base year serves as a reference point for calculating the tenant's share of operating expenses throughout the lease term. During the base year, the landlord will determine the actual operating expenses incurred for the leased property. Once these costs are established, the Gross Up Clause will come into play. The clause allows for the adjustment of operating expenses to reflect what they would have been if the property had been fully occupied throughout the base year. There are different types of West Virginia Gross Up Clauses that can be used in a base year lease. These include: 1. Full Gross Up Clause: Under this type of clause, the operating expenses are adjusted to reflect what they would have been if the property had been fully occupied during the base year, regardless of the actual occupancy levels. This means that the tenant's share of operating expenses may increase proportionately to account for a hypothetical full occupancy scenario. 2. Partial Gross Up Clause: This clause allows for the adjustment of operating expenses based on the actual occupancy levels during the base year. The adjustment is made to account for the difference between the actual occupancy and the hypothetical full occupancy. The tenant's share of operating expenses will increase, but not to the extent as under a full gross-up clause. 3. No Gross Up Clause: In some cases, a base year lease may not include a gross-up clause. In such instances, the tenant's share of operating expenses remains fixed and is not adjusted for occupancy levels during the base year. This arrangement can be beneficial for the tenant as their contribution remains consistent throughout the lease term. In conclusion, a West Virginia Gross Up Clause in a base year lease is a provision used to adjust operating expenses based on hypothetical full occupancy levels during the base year. These clauses ensure fairness and consistency in determining a tenant's share of operating expenses. Different types of gross-up clauses, such as full gross-up, partial gross-up, or no gross-up, may be utilized depending on the specific lease agreement.
