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.
In Franklin, Ohio, a gross up clause is a significant aspect to consider when drafting a base year lease. This clause ensures fair allocation of expenses between tenants in a multi-tenant property. By using a gross up clause, the landlord ensures that all tenants contribute proportionately to the common area maintenance (CAM) expenses, providing a more equitable leasing arrangement. One type of Franklin Ohio gross up clause that should be used in a base year lease is the "Tenant Pro Rata Share" clause. This clause proportionally distributes CAM expenses amongst tenants based on the size of their leased space. It ensures that tenants pay their fair share for the maintenance and upkeep of shared areas such as parking lots, hallways, lobbies, and common areas. Another type of gross up clause is the "Expense Stop Clause." With this clause, the landlord establishes a cap on CAM expenses. Once this cap is reached, the landlord bears the responsibility for any additional costs. This protects tenants from excessive expense increases during the lease term, while still promoting the equitable allocation of expenses. Furthermore, the "Full Floor Occupancy" clause is a variant of the gross up clause that applies when a tenant occupies an entire floor or multiple floors of a building. In this scenario, the tenant is responsible for directly paying all related CAM expenses without any adjustment or distribution amongst other tenants. The Franklin Ohio gross up clause serves to maintain a just and balanced environment for tenants, creating transparency and fairness in expense distribution. It is important for both landlords and tenants to negotiate and incorporate the most suitable gross up clause in their base year leases, ensuring transparency and preventing any potential disputes regarding CAM expenses.In Franklin, Ohio, a gross up clause is a significant aspect to consider when drafting a base year lease. This clause ensures fair allocation of expenses between tenants in a multi-tenant property. By using a gross up clause, the landlord ensures that all tenants contribute proportionately to the common area maintenance (CAM) expenses, providing a more equitable leasing arrangement. One type of Franklin Ohio gross up clause that should be used in a base year lease is the "Tenant Pro Rata Share" clause. This clause proportionally distributes CAM expenses amongst tenants based on the size of their leased space. It ensures that tenants pay their fair share for the maintenance and upkeep of shared areas such as parking lots, hallways, lobbies, and common areas. Another type of gross up clause is the "Expense Stop Clause." With this clause, the landlord establishes a cap on CAM expenses. Once this cap is reached, the landlord bears the responsibility for any additional costs. This protects tenants from excessive expense increases during the lease term, while still promoting the equitable allocation of expenses. Furthermore, the "Full Floor Occupancy" clause is a variant of the gross up clause that applies when a tenant occupies an entire floor or multiple floors of a building. In this scenario, the tenant is responsible for directly paying all related CAM expenses without any adjustment or distribution amongst other tenants. The Franklin Ohio gross up clause serves to maintain a just and balanced environment for tenants, creating transparency and fairness in expense distribution. It is important for both landlords and tenants to negotiate and incorporate the most suitable gross up clause in their base year leases, ensuring transparency and preventing any potential disputes regarding CAM expenses.
