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 Wyoming Clause for Grossing Up the Tenant Proportionate Share is a specific provision often included in commercial real estate leases. It aims to ensure that the tenant's share of operating expenses for the property is not affected by changes in the overall occupancy level of the building or property. The clause is known as the "Wyoming Clause" because it originated in Wyoming and was initially used in leases within the state. However, it has since been adopted and incorporated into leases in various other locations as well. The purpose of the Wyoming Clause for Grossing Up the Tenant Proportionate Share is to prevent discrepancies in operating expenses when the property is not fully occupied. It avoids placing an undue burden on tenants who lease a space in a building where others may be vacant or unoccupied. Typically, in a commercial lease, tenants are responsible for paying a proportionate share of operating expenses, which include items like property taxes, insurance, maintenance costs, and common area expenses. The tenant's proportionate share is usually determined based on their leased square footage divided by the total leasable square footage of the property. However, without a Wyoming Clause, tenants may face an increase in their proportionate share when there are vacant spaces in the building. This occurs because the operating expenses are then divided among a smaller number of occupied tenants, resulting in a higher cost per square foot for each tenant. Consequently, the clause ensures that tenants are not penalized for a lack of occupancy and that their proportionate share remains consistent regardless of the overall occupancy level. There can be variations or different types of Wyoming Clauses for Grossing Up the Tenant Proportionate Share depending on specific lease agreements or landlord preferences. Some variations include: 1. Vacancy Gross-Up Clause: This type of Wyoming Clause allows the landlord to estimate and include the expenses that would have been incurred if the property were fully occupied. The landlord can then use this adjusted amount to determine the tenant's proportionate share, ensuring they are not affected by the vacancy. 2. Step-Up Gross-Up Clause: This variation includes a gradual increase in the tenant's proportionate share over a period of time, typically in anticipation of further occupancy in the building. This clause ensures that tenants are prepared for potential increases in expenses as the property becomes more fully occupied. 3. Annual Gross-Up Clause: This type of Wyoming Clause allows for the grossing up of the tenant's proportionate share on an annual basis, typically at the end of each year. This ensures that the tenant's share is adjusted to reflect any changes in overall expenses or occupancy levels over time. In summary, the Wyoming Clause for Grossing Up the Tenant Proportionate Share safeguards tenants from increasing operating expenses due to a lack of occupancy. It helps maintain fairness and consistency in the allocation of costs, regardless of the overall occupancy level of the commercial property.The Wyoming Clause for Grossing Up the Tenant Proportionate Share is a specific provision often included in commercial real estate leases. It aims to ensure that the tenant's share of operating expenses for the property is not affected by changes in the overall occupancy level of the building or property. The clause is known as the "Wyoming Clause" because it originated in Wyoming and was initially used in leases within the state. However, it has since been adopted and incorporated into leases in various other locations as well. The purpose of the Wyoming Clause for Grossing Up the Tenant Proportionate Share is to prevent discrepancies in operating expenses when the property is not fully occupied. It avoids placing an undue burden on tenants who lease a space in a building where others may be vacant or unoccupied. Typically, in a commercial lease, tenants are responsible for paying a proportionate share of operating expenses, which include items like property taxes, insurance, maintenance costs, and common area expenses. The tenant's proportionate share is usually determined based on their leased square footage divided by the total leasable square footage of the property. However, without a Wyoming Clause, tenants may face an increase in their proportionate share when there are vacant spaces in the building. This occurs because the operating expenses are then divided among a smaller number of occupied tenants, resulting in a higher cost per square foot for each tenant. Consequently, the clause ensures that tenants are not penalized for a lack of occupancy and that their proportionate share remains consistent regardless of the overall occupancy level. There can be variations or different types of Wyoming Clauses for Grossing Up the Tenant Proportionate Share depending on specific lease agreements or landlord preferences. Some variations include: 1. Vacancy Gross-Up Clause: This type of Wyoming Clause allows the landlord to estimate and include the expenses that would have been incurred if the property were fully occupied. The landlord can then use this adjusted amount to determine the tenant's proportionate share, ensuring they are not affected by the vacancy. 2. Step-Up Gross-Up Clause: This variation includes a gradual increase in the tenant's proportionate share over a period of time, typically in anticipation of further occupancy in the building. This clause ensures that tenants are prepared for potential increases in expenses as the property becomes more fully occupied. 3. Annual Gross-Up Clause: This type of Wyoming Clause allows for the grossing up of the tenant's proportionate share on an annual basis, typically at the end of each year. This ensures that the tenant's share is adjusted to reflect any changes in overall expenses or occupancy levels over time. In summary, the Wyoming Clause for Grossing Up the Tenant Proportionate Share safeguards tenants from increasing operating expenses due to a lack of occupancy. It helps maintain fairness and consistency in the allocation of costs, regardless of the overall occupancy level of the commercial property.
