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.
The Broward Florida Gross Up Clause is a crucial provision that should be incorporated into a Base Year Lease to ensure fairness in the allocation of operating expenses among tenants in a commercial property. This clause is relevant for both landlords and tenants as it addresses the issue of increasing operating expenses over time and seeks to distribute these costs equitably. There are several types of Broward Florida Gross Up Clauses that can be used in a Base Year Lease, each serving a specific purpose: 1. Single-Tenant Gross Up Clause: This type of clause is applicable to leases where only one tenant occupies the property. It allows the landlord to calculate the grossed-up operating expenses based on the total rentable area of the property, even if it is not fully occupied. This ensures that the tenant is not unfairly burdened with a disproportionate share of the operating expenses. 2. Multi-Tenant Gross Up Clause: In situations where there are multiple tenants in a commercial property, a Multi-Tenant Gross Up Clause can be utilized. This clause enables the landlord to adjust the operating expenses based on the occupancy level of the property during the base year. It ensures that the expenses are distributed fairly among the tenants, taking into account any vacant spaces. 3. CPI-Indexed Gross Up Clause: To account for inflation and changes in the Consumer Price Index (CPI), a CPI-Indexed Gross Up Clause can be included in a Base Year Lease. This clause allows the landlord to adjust the operating expenses annually based on the percentage increase in the CPI. It ensures that the expenses allocated to each tenant accurately reflect the market conditions and inflationary factors during the lease term. 4. Expense Stop Gross Up Clause: The Expense Stop Gross Up Clause is used to establish a maximum amount of operating expenses that each tenant must contribute towards. Once the expenses exceed the predetermined limit, the additional amount is not passed on to the tenant. This type of clause provides tenants with cost certainty and protects them from unexpectedly high operating expenses. In Broward Florida, the Gross Up Clause is an essential component of a Base Year Lease, offering transparency and fairness in the allocation of operating expenses. It is crucial for landlords and tenants to carefully consider and negotiate the specific type of Gross Up Clause that best suits their needs and ensures an equitable distribution of costs.The Broward Florida Gross Up Clause is a crucial provision that should be incorporated into a Base Year Lease to ensure fairness in the allocation of operating expenses among tenants in a commercial property. This clause is relevant for both landlords and tenants as it addresses the issue of increasing operating expenses over time and seeks to distribute these costs equitably. There are several types of Broward Florida Gross Up Clauses that can be used in a Base Year Lease, each serving a specific purpose: 1. Single-Tenant Gross Up Clause: This type of clause is applicable to leases where only one tenant occupies the property. It allows the landlord to calculate the grossed-up operating expenses based on the total rentable area of the property, even if it is not fully occupied. This ensures that the tenant is not unfairly burdened with a disproportionate share of the operating expenses. 2. Multi-Tenant Gross Up Clause: In situations where there are multiple tenants in a commercial property, a Multi-Tenant Gross Up Clause can be utilized. This clause enables the landlord to adjust the operating expenses based on the occupancy level of the property during the base year. It ensures that the expenses are distributed fairly among the tenants, taking into account any vacant spaces. 3. CPI-Indexed Gross Up Clause: To account for inflation and changes in the Consumer Price Index (CPI), a CPI-Indexed Gross Up Clause can be included in a Base Year Lease. This clause allows the landlord to adjust the operating expenses annually based on the percentage increase in the CPI. It ensures that the expenses allocated to each tenant accurately reflect the market conditions and inflationary factors during the lease term. 4. Expense Stop Gross Up Clause: The Expense Stop Gross Up Clause is used to establish a maximum amount of operating expenses that each tenant must contribute towards. Once the expenses exceed the predetermined limit, the additional amount is not passed on to the tenant. This type of clause provides tenants with cost certainty and protects them from unexpectedly high operating expenses. In Broward Florida, the Gross Up Clause is an essential component of a Base Year Lease, offering transparency and fairness in the allocation of operating expenses. It is crucial for landlords and tenants to carefully consider and negotiate the specific type of Gross Up Clause that best suits their needs and ensures an equitable distribution of costs.
