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 Cuyahoga Ohio Gross Up Clause is a provision that may be included in a base year lease agreement in order to account for potential increases in operating expenses for a commercial property. This clause is particularly important in lease agreements where tenants are responsible for a portion of the property's operating expenses, such as common area maintenance (CAM) fees. The purpose of a Cuyahoga Ohio Gross Up Clause is to ensure that tenants are only responsible for a fair share of operating expenses based on the actual occupancy level of the property. It helps prevent situations where tenants are burdened with higher expenses due to a lower occupancy rate. The clause achieves this by "grossing up" the operating expenses to theoretically reflect a fully occupied property. There are two main types of Cuyahoga Ohio Gross Up Clauses that can be used in a base year lease: 1. Full Gross Up Clause: This type of clause allows the landlord to include a provision that states all operating expenses will be calculated as if the property were fully occupied, regardless of its actual occupancy level. In other words, the landlord will estimate the expenses as if all rentable space is leased, even if it is not the case. This method ensures that tenants are not unfairly burdened with higher expenses due to vacancies. 2. Partial Gross Up Clause: Unlike the full gross up clause, the partial gross up clause allows the landlord to "gross up" only certain operating expenses, such as CAM fees, while excluding others. This method can be used when certain expenses are not affected by the occupancy level of the property or when it is deemed reasonable to exclude specific costs from grossing up. It is important for both landlords and tenants to carefully consider the inclusion of a Cuyahoga Ohio Gross Up Clause in a base year lease, as it determines the allocation of expenses and can significantly impact the financial obligations of the parties involved. Landlords should provide clear explanations of the clause to tenants, ensuring they understand how it works and why it is included. Tenants should also review the clause carefully and seek legal advice if necessary to fully understand its implications. In summary, a Cuyahoga Ohio Gross Up Clause is an essential provision in a base year lease that helps ensure fair and equitable distribution of operating expenses based on the property's occupancy level. Landlords may use either a full or partial gross up clause, depending on the specifics of the lease agreement and the nature of expenses to be grossed up.The Cuyahoga Ohio Gross Up Clause is a provision that may be included in a base year lease agreement in order to account for potential increases in operating expenses for a commercial property. This clause is particularly important in lease agreements where tenants are responsible for a portion of the property's operating expenses, such as common area maintenance (CAM) fees. The purpose of a Cuyahoga Ohio Gross Up Clause is to ensure that tenants are only responsible for a fair share of operating expenses based on the actual occupancy level of the property. It helps prevent situations where tenants are burdened with higher expenses due to a lower occupancy rate. The clause achieves this by "grossing up" the operating expenses to theoretically reflect a fully occupied property. There are two main types of Cuyahoga Ohio Gross Up Clauses that can be used in a base year lease: 1. Full Gross Up Clause: This type of clause allows the landlord to include a provision that states all operating expenses will be calculated as if the property were fully occupied, regardless of its actual occupancy level. In other words, the landlord will estimate the expenses as if all rentable space is leased, even if it is not the case. This method ensures that tenants are not unfairly burdened with higher expenses due to vacancies. 2. Partial Gross Up Clause: Unlike the full gross up clause, the partial gross up clause allows the landlord to "gross up" only certain operating expenses, such as CAM fees, while excluding others. This method can be used when certain expenses are not affected by the occupancy level of the property or when it is deemed reasonable to exclude specific costs from grossing up. It is important for both landlords and tenants to carefully consider the inclusion of a Cuyahoga Ohio Gross Up Clause in a base year lease, as it determines the allocation of expenses and can significantly impact the financial obligations of the parties involved. Landlords should provide clear explanations of the clause to tenants, ensuring they understand how it works and why it is included. Tenants should also review the clause carefully and seek legal advice if necessary to fully understand its implications. In summary, a Cuyahoga Ohio Gross Up Clause is an essential provision in a base year lease that helps ensure fair and equitable distribution of operating expenses based on the property's occupancy level. Landlords may use either a full or partial gross up clause, depending on the specifics of the lease agreement and the nature of expenses to be grossed up.
