This office lease clause should be used in an expense stop, stipulated base or office net lease. 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 for each lease year to determine what the building operating costs. Such an adjustment shall be made by the landlord increasing the variable components of such variable costs included in the building operating costs which vary based on the level of occupancy of the building.
The Alameda California Gross Up Clause is a provision that should be included in an Expense Stop Stipulated Base or Office Net Lease contract. This clause ensures that the tenant is not responsible for any expenses that surpass the agreed-upon expense stop limit. The purpose of the Gross Up Clause is to allocate the cost of operating and maintaining the property fairly between the landlord and tenant. It helps prevent the tenant from being burdened with unexpected or excessive expenses that may occur due to changes in the property's operating costs. There are several types of Alameda California Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease. Some common forms include: 1. Pro Rata Gross Up Clause: This type of clause requires the landlord to calculate the tenant's proportional share of the increased expenses based on the occupied square footage of their rented space. It ensures that the tenant pays only their fair share of the expenses. 2. Expense Stop Gross Up Clause: This clause sets a limit on the tenant's responsibility for operating expenses. If the total expenses exceed this predetermined stop point, the additional costs are distributed between the landlord and the tenant according to their respective shares. 3. Full Gross Up Clause: This clause ensures that the tenant only pays their share of expenses based on the actual occupancy rate of the building. It takes into account any vacancy or unoccupied space within the building, allowing the tenant to avoid paying for vacant spaces. 4. Consumer Price Index (CPI) Gross Up Clause: This clause accounts for inflation by adjusting the expense stop or operating expenses based on changes in the CPI. It prevents the tenant from facing a disproportionate increase in expenses due to inflation. It is important to include an Alameda California Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease to protect both the landlord and tenant's interests and to maintain a fair allocation of expenses within the lease agreement.The Alameda California Gross Up Clause is a provision that should be included in an Expense Stop Stipulated Base or Office Net Lease contract. This clause ensures that the tenant is not responsible for any expenses that surpass the agreed-upon expense stop limit. The purpose of the Gross Up Clause is to allocate the cost of operating and maintaining the property fairly between the landlord and tenant. It helps prevent the tenant from being burdened with unexpected or excessive expenses that may occur due to changes in the property's operating costs. There are several types of Alameda California Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease. Some common forms include: 1. Pro Rata Gross Up Clause: This type of clause requires the landlord to calculate the tenant's proportional share of the increased expenses based on the occupied square footage of their rented space. It ensures that the tenant pays only their fair share of the expenses. 2. Expense Stop Gross Up Clause: This clause sets a limit on the tenant's responsibility for operating expenses. If the total expenses exceed this predetermined stop point, the additional costs are distributed between the landlord and the tenant according to their respective shares. 3. Full Gross Up Clause: This clause ensures that the tenant only pays their share of expenses based on the actual occupancy rate of the building. It takes into account any vacancy or unoccupied space within the building, allowing the tenant to avoid paying for vacant spaces. 4. Consumer Price Index (CPI) Gross Up Clause: This clause accounts for inflation by adjusting the expense stop or operating expenses based on changes in the CPI. It prevents the tenant from facing a disproportionate increase in expenses due to inflation. It is important to include an Alameda California Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease to protect both the landlord and tenant's interests and to maintain a fair allocation of expenses within the lease agreement.
