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 Collin Texas Gross Up Clause is an important aspect to consider when drafting an Expense Stop Stipulated Base or Office Net Lease in Collin County, Texas. This clause addresses the issue of a tenant’s proportional share of increased operating expenses beyond the expense stop. In an Expense Stop Stipulated Base Lease, the gross up clause ensures that the tenant is responsible for their fair share of increased operating expenses that exceed the predetermined expense stop. The gross up amount is calculated by estimating the expenses that would have been incurred if the property was fully occupied. This calculation is then used to determine the tenant's proportionate share of the increase. There are different types of Collin Texas Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease, depending on the specific lease agreement. Here are a few variations: 1. Standard Collin Texas Gross Up Clause: This clause states that if the total occupancy level of the property decreases below a certain threshold, the tenant's share of operating expenses will increase proportionally to compensate for the decreased occupancy. The exact threshold and formula for calculation should be clearly outlined in the lease agreement. 2. Full Occupancy Gross Up Clause: Under this clause, the tenant is responsible for their proportionate share of operating expenses based on the assumption that the property is fully occupied, regardless of the actual occupancy level. This can result in additional costs for the tenant if the property is not fully leased, as they are required to cover the expenses that would have been incurred if the property had been fully occupied. 3. Partial Occupancy Gross Up Clause: This clause takes into account the actual occupancy level of the property and adjusts the tenant's share of operating expenses accordingly. The calculation is based on the percentage of occupied space, ensuring that the tenant only pays their proportionate share of the expenses for the occupied portion of the property. It is important for both landlords and tenants to thoroughly understand the Collin Texas Gross Up Clause and its variations. By clearly outlining it in the lease agreement, potential disputes regarding operating expenses beyond the expense stop can be minimized.The Collin Texas Gross Up Clause is an important aspect to consider when drafting an Expense Stop Stipulated Base or Office Net Lease in Collin County, Texas. This clause addresses the issue of a tenant’s proportional share of increased operating expenses beyond the expense stop. In an Expense Stop Stipulated Base Lease, the gross up clause ensures that the tenant is responsible for their fair share of increased operating expenses that exceed the predetermined expense stop. The gross up amount is calculated by estimating the expenses that would have been incurred if the property was fully occupied. This calculation is then used to determine the tenant's proportionate share of the increase. There are different types of Collin Texas Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease, depending on the specific lease agreement. Here are a few variations: 1. Standard Collin Texas Gross Up Clause: This clause states that if the total occupancy level of the property decreases below a certain threshold, the tenant's share of operating expenses will increase proportionally to compensate for the decreased occupancy. The exact threshold and formula for calculation should be clearly outlined in the lease agreement. 2. Full Occupancy Gross Up Clause: Under this clause, the tenant is responsible for their proportionate share of operating expenses based on the assumption that the property is fully occupied, regardless of the actual occupancy level. This can result in additional costs for the tenant if the property is not fully leased, as they are required to cover the expenses that would have been incurred if the property had been fully occupied. 3. Partial Occupancy Gross Up Clause: This clause takes into account the actual occupancy level of the property and adjusts the tenant's share of operating expenses accordingly. The calculation is based on the percentage of occupied space, ensuring that the tenant only pays their proportionate share of the expenses for the occupied portion of the property. It is important for both landlords and tenants to thoroughly understand the Collin Texas Gross Up Clause and its variations. By clearly outlining it in the lease agreement, potential disputes regarding operating expenses beyond the expense stop can be minimized.
