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.
San Jose, California is a vibrant city located in the heart of Silicon Valley. It serves as the economic, cultural, and political center of Santa Clara County. Known for its booming technology industry, San Jose is home to numerous high-tech companies, including some of the biggest names in the tech world. When it comes to commercial leasing in San Jose, one important clause that should be considered is the gross up clause. A gross up clause is typically utilized in a base year lease to account for any increases in operating expenses that may occur during the term of the lease. This clause ensures that the tenant's share of operating expenses remains consistent despite any fluctuations in the overall expenses. There are different types of gross up clauses that can be used in a base year lease in San Jose, California. One common type is the expense stop gross up clause. This type of clause sets a limit, or "expense stop," on the tenant's share of operating expenses. If the actual expenses exceed the predetermined expense stop, the landlord is responsible for absorbing the additional costs. Another type is the pass-through gross up clause. With this clause, any increase in operating expenses beyond the base year is passed on to the tenant. In this case, the tenant is responsible for covering their proportional share of the increased expenses. Additionally, a direct expense gross up clause may be used in San Jose, California. This clause allows the landlord to directly impose and allocate increased operating expenses to the tenant, without any specific limits or caps. The tenant would then be responsible for paying the increased expenses as billed by the landlord. It's important for tenants and landlords in San Jose, California to carefully review and negotiate the gross up clause in a base year lease. Factors such as the specific type of gross up clause, the expense stop or limit, and the allocation method should be discussed and agreed upon to ensure a fair and balanced lease agreement. Overall, the gross up clause in a base year lease in San Jose, California is a critical provision that helps regulate and manage the changing operating expenses in commercial leasing. It provides stability and transparency for both tenants and landlords, ensuring a fair allocation of costs throughout the lease term.San Jose, California is a vibrant city located in the heart of Silicon Valley. It serves as the economic, cultural, and political center of Santa Clara County. Known for its booming technology industry, San Jose is home to numerous high-tech companies, including some of the biggest names in the tech world. When it comes to commercial leasing in San Jose, one important clause that should be considered is the gross up clause. A gross up clause is typically utilized in a base year lease to account for any increases in operating expenses that may occur during the term of the lease. This clause ensures that the tenant's share of operating expenses remains consistent despite any fluctuations in the overall expenses. There are different types of gross up clauses that can be used in a base year lease in San Jose, California. One common type is the expense stop gross up clause. This type of clause sets a limit, or "expense stop," on the tenant's share of operating expenses. If the actual expenses exceed the predetermined expense stop, the landlord is responsible for absorbing the additional costs. Another type is the pass-through gross up clause. With this clause, any increase in operating expenses beyond the base year is passed on to the tenant. In this case, the tenant is responsible for covering their proportional share of the increased expenses. Additionally, a direct expense gross up clause may be used in San Jose, California. This clause allows the landlord to directly impose and allocate increased operating expenses to the tenant, without any specific limits or caps. The tenant would then be responsible for paying the increased expenses as billed by the landlord. It's important for tenants and landlords in San Jose, California to carefully review and negotiate the gross up clause in a base year lease. Factors such as the specific type of gross up clause, the expense stop or limit, and the allocation method should be discussed and agreed upon to ensure a fair and balanced lease agreement. Overall, the gross up clause in a base year lease in San Jose, California is a critical provision that helps regulate and manage the changing operating expenses in commercial leasing. It provides stability and transparency for both tenants and landlords, ensuring a fair allocation of costs throughout the lease term.
