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 Cook Illinois Gross up Clause is a crucial component to include in a Base Year Lease agreement. This specific clause ensures that the tenant is responsible for paying their fair share of operating expenses, such as taxes, maintenance, insurance, and utilities, based on the proportionate use of the leased space within the entire building. There are different types of Cook Illinois Gross up Clauses that can be utilized in a Base Year Lease, each offering unique advantages. These types are: 1. Standard Gross up Clause: This type of clause requires the tenant to pay a percentage or an allocated portion of total operating expenses based on the square footage of the leased area. It ensures the tenant assumes only their proportionate share of the expenses in relation to the overall building. 2. Expense Stop Gross up Clause: In this type of clause, the tenant remains responsible for paying a specific amount of operating expenses that are pre-determined and capped at a certain threshold, known as an "expense stop." The landlord assumes any costs exceeding the expense stop, providing the tenant with more predictability regarding their financial obligations. 3. Gross up Clause with Cap: This variation of the clause includes a cap on the total amount the tenant can be charged for grossing up expenses. It provides protection to the tenant by limiting sudden and significant escalations in operating expenses that might occur in a particular year. 4. Escalation Gross up Clause: With this type of clause, the tenant's proportionate share of operating expenses is calculated based on the increase from the Base Year. The Base Year represents the starting point when determining expenses, and any subsequent increases are passed on to the tenant. 5. Net Lease Gross up Clause: In a Net Lease, the tenant pays not only the base rent but also their proportionate share of operating expenses, including taxes, insurance, and maintenance. The Gross up Clause in a Net Lease incorporates all operating expenses and ensures the tenant contributes their fair share as per the proportionate use of the leased space. Including a Cook Illinois Gross up Clause in a Base Year Lease is essential to maintain fairness, transparency, and cost-sharing between the landlord and tenant. These various types of clauses allow flexibility, ensuring an equitable distribution of operating expenses while protecting both parties' interests.The Cook Illinois Gross up Clause is a crucial component to include in a Base Year Lease agreement. This specific clause ensures that the tenant is responsible for paying their fair share of operating expenses, such as taxes, maintenance, insurance, and utilities, based on the proportionate use of the leased space within the entire building. There are different types of Cook Illinois Gross up Clauses that can be utilized in a Base Year Lease, each offering unique advantages. These types are: 1. Standard Gross up Clause: This type of clause requires the tenant to pay a percentage or an allocated portion of total operating expenses based on the square footage of the leased area. It ensures the tenant assumes only their proportionate share of the expenses in relation to the overall building. 2. Expense Stop Gross up Clause: In this type of clause, the tenant remains responsible for paying a specific amount of operating expenses that are pre-determined and capped at a certain threshold, known as an "expense stop." The landlord assumes any costs exceeding the expense stop, providing the tenant with more predictability regarding their financial obligations. 3. Gross up Clause with Cap: This variation of the clause includes a cap on the total amount the tenant can be charged for grossing up expenses. It provides protection to the tenant by limiting sudden and significant escalations in operating expenses that might occur in a particular year. 4. Escalation Gross up Clause: With this type of clause, the tenant's proportionate share of operating expenses is calculated based on the increase from the Base Year. The Base Year represents the starting point when determining expenses, and any subsequent increases are passed on to the tenant. 5. Net Lease Gross up Clause: In a Net Lease, the tenant pays not only the base rent but also their proportionate share of operating expenses, including taxes, insurance, and maintenance. The Gross up Clause in a Net Lease incorporates all operating expenses and ensures the tenant contributes their fair share as per the proportionate use of the leased space. Including a Cook Illinois Gross up Clause in a Base Year Lease is essential to maintain fairness, transparency, and cost-sharing between the landlord and tenant. These various types of clauses allow flexibility, ensuring an equitable distribution of operating expenses while protecting both parties' interests.
