This office lease form is a supplement regarding the building operating expenses which are escalated to the tenant. This form lists items to be excluded from the calculation of building operating costs.
The Harris Texas Building Operating Cost Addendum is a legal document used in real estate transactions to outline the responsibilities and obligations of both landlords and tenants regarding operating costs associated with a commercial building in Harris County, Texas. Keywords: Harris Texas, Building Operating Cost Addendum, commercial building, real estate transactions, landlords, tenants, operating costs, obligations, responsibilities, Harris County. There are two main types of Harris Texas Building Operating Cost Addendum, namely: 1. Triple Net Lease (NNN) Addendum: This addendum is commonly used in commercial leases, where the tenant agrees to pay not only the base rent but also their proportionate share of operating expenses such as property taxes, insurance, maintenance, repairs, and utilities associated with the leased building. The NNN lease allows landlords to pass on the majority of the property-related expenses to tenants. 2. Gross Lease Addendum: Unlike the NNN addendum, a Gross Lease Addendum stipulates that the landlord will be responsible for paying the operating costs associated with the commercial building. The tenant, in turn, pays a fixed monthly rental amount, which includes all operating expenses. This type of addendum provides more predictability for tenants as they do not have to bear the fluctuating costs of operating expenses. Both types of Harris Texas Building Operating Cost Addendum aim to establish clear guidelines and agreements between landlords and tenants regarding the allocation and payment of operating costs. By having such an addendum, both parties can effectively manage and budget for the ongoing expenses associated with maintaining and operating the commercial building during the lease term.The Harris Texas Building Operating Cost Addendum is a legal document used in real estate transactions to outline the responsibilities and obligations of both landlords and tenants regarding operating costs associated with a commercial building in Harris County, Texas. Keywords: Harris Texas, Building Operating Cost Addendum, commercial building, real estate transactions, landlords, tenants, operating costs, obligations, responsibilities, Harris County. There are two main types of Harris Texas Building Operating Cost Addendum, namely: 1. Triple Net Lease (NNN) Addendum: This addendum is commonly used in commercial leases, where the tenant agrees to pay not only the base rent but also their proportionate share of operating expenses such as property taxes, insurance, maintenance, repairs, and utilities associated with the leased building. The NNN lease allows landlords to pass on the majority of the property-related expenses to tenants. 2. Gross Lease Addendum: Unlike the NNN addendum, a Gross Lease Addendum stipulates that the landlord will be responsible for paying the operating costs associated with the commercial building. The tenant, in turn, pays a fixed monthly rental amount, which includes all operating expenses. This type of addendum provides more predictability for tenants as they do not have to bear the fluctuating costs of operating expenses. Both types of Harris Texas Building Operating Cost Addendum aim to establish clear guidelines and agreements between landlords and tenants regarding the allocation and payment of operating costs. By having such an addendum, both parties can effectively manage and budget for the ongoing expenses associated with maintaining and operating the commercial building during the lease term.
