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 Lima Arizona Gross up Clause is an essential component of a base year lease agreement, aimed at ensuring fairness and accuracy in the allocation of operating expenses among tenants in a property. This clause is particularly necessary when dealing with multi-tenant properties. A Gross up Clause is used to adjust the actual operating expenses of the property to reflect a hypothetical scenario where the property is fully occupied. This adjustment allows for an equitable distribution of expenses among tenants, taking into account unoccupied or vacant spaces. There are different types of Lima Arizona Gross up Clauses that can be used in a base year lease, each addressing specific scenarios and considerations. Here are a few examples: 1. Full Occupancy Gross up: This clause assumes that the property is fully occupied, regardless of the actual occupancy rate. Operating expenses are adjusted to reflect what they would be if every space were leased. This type of gross up clause is commonly used in base year leases for properties with high vacancy rates. 2. Partial Occupancy Gross up: This type of clause takes into account the actual occupancy rate of the property. Operating expenses are adjusted based on the percentage of the property that is leased. This gross up method is often used in base year leases for properties with moderate vacancy rates. 3. Expense Stop Gross up: In some cases, a lease agreement may include an expense stop, which is a predetermined amount beyond which the tenant is not responsible for additional operating expenses. With this type of gross up clause, operating expenses are adjusted to reflect the total costs incurred by all tenants up to the expense stop limit. 4. Pro rata Gross up: This clause considers the square footage of each tenant's leased space in relation to the total leasable area. Operating expenses are apportioned based on the percentage of space leased by each tenant. This type of gross up clause is commonly used in base year leases for properties where tenants have varying lease sizes. All these different Lima Arizona Gross up Clauses serve to ensure fairness in cost allocation among tenants and provide a clear framework for determining each tenant's share of operating expenses. It is crucial for landlords and tenants to carefully review and discuss the specific gross up clause that best suits their circumstances, ensuring accurate and agreeable expense calculations in base year lease agreements.The Lima Arizona Gross up Clause is an essential component of a base year lease agreement, aimed at ensuring fairness and accuracy in the allocation of operating expenses among tenants in a property. This clause is particularly necessary when dealing with multi-tenant properties. A Gross up Clause is used to adjust the actual operating expenses of the property to reflect a hypothetical scenario where the property is fully occupied. This adjustment allows for an equitable distribution of expenses among tenants, taking into account unoccupied or vacant spaces. There are different types of Lima Arizona Gross up Clauses that can be used in a base year lease, each addressing specific scenarios and considerations. Here are a few examples: 1. Full Occupancy Gross up: This clause assumes that the property is fully occupied, regardless of the actual occupancy rate. Operating expenses are adjusted to reflect what they would be if every space were leased. This type of gross up clause is commonly used in base year leases for properties with high vacancy rates. 2. Partial Occupancy Gross up: This type of clause takes into account the actual occupancy rate of the property. Operating expenses are adjusted based on the percentage of the property that is leased. This gross up method is often used in base year leases for properties with moderate vacancy rates. 3. Expense Stop Gross up: In some cases, a lease agreement may include an expense stop, which is a predetermined amount beyond which the tenant is not responsible for additional operating expenses. With this type of gross up clause, operating expenses are adjusted to reflect the total costs incurred by all tenants up to the expense stop limit. 4. Pro rata Gross up: This clause considers the square footage of each tenant's leased space in relation to the total leasable area. Operating expenses are apportioned based on the percentage of space leased by each tenant. This type of gross up clause is commonly used in base year leases for properties where tenants have varying lease sizes. All these different Lima Arizona Gross up Clauses serve to ensure fairness in cost allocation among tenants and provide a clear framework for determining each tenant's share of operating expenses. It is crucial for landlords and tenants to carefully review and discuss the specific gross up clause that best suits their circumstances, ensuring accurate and agreeable expense calculations in base year lease agreements.
