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.
A Contra Costa California Gross Up Clause is a crucial component of an Expense Stop Stipulated Base or Office Net Lease agreement. It ensures that the tenant is responsible for paying their fair share of operating expenses incurred by the landlord. This clause is especially important in lease agreements involving multiple tenants sharing a building or office space, as it ensures equitable distribution of operating costs. The purpose of a Gross Up Clause is to account for fluctuations in occupancy levels within a building or office space. The clause stipulates that if the building or office space is not fully occupied, the landlord has the right to adjust the tenant's share of operating expenses to reflect a hypothetical full occupancy scenario. This provision prevents the burden of operating expenses from falling solely on the tenants occupying the building, ensuring fairness and equal distribution of costs. There are different types of Contra Costa California Gross Up Clauses that may be used in an Expense Stop Stipulated Base or Office Net Lease: 1. Full Occupancy Gross Up Clause: This clause allows the landlord to calculate the tenant's share of operating expenses based on a hypothetical full occupancy scenario, regardless of the actual occupancy level. This ensures that the tenant pays their proportional share of expenses, irrespective of the vacancies within the building or office space. 2. Partial Occupancy Gross Up Clause: In some cases, the Gross Up Clause may be structured to allow the landlord to adjust the tenant's share of operating expenses based only on the actual occupancy level of the building or office space. This type of clause considers only the occupied area and seeks to fairly distribute costs among the tenants based on their actual usage. 3. Prorate Gross Up Clause: This type of Gross Up Clause considers both the occupied and vacant areas of the building or office space. It calculates the tenant's share of expenses by considering the rental square footage occupied by the tenant in relation to the total rentable square footage of the building. This ensures that the tenant only pays for their proportionate usage of the space, regardless of overall occupancy levels. In conclusion, a Contra Costa California Gross Up Clause is an essential element of any Expense Stop Stipulated Base or Office Net Lease agreement. It ensures fair distribution of operating expenses among tenants, considering factors such as occupancy levels. Different types of Gross Up Clauses, such as Full Occupancy, Partial Occupancy, and Prorate, may be used depending on the specific circumstances of the lease agreement.A Contra Costa California Gross Up Clause is a crucial component of an Expense Stop Stipulated Base or Office Net Lease agreement. It ensures that the tenant is responsible for paying their fair share of operating expenses incurred by the landlord. This clause is especially important in lease agreements involving multiple tenants sharing a building or office space, as it ensures equitable distribution of operating costs. The purpose of a Gross Up Clause is to account for fluctuations in occupancy levels within a building or office space. The clause stipulates that if the building or office space is not fully occupied, the landlord has the right to adjust the tenant's share of operating expenses to reflect a hypothetical full occupancy scenario. This provision prevents the burden of operating expenses from falling solely on the tenants occupying the building, ensuring fairness and equal distribution of costs. There are different types of Contra Costa California Gross Up Clauses that may be used in an Expense Stop Stipulated Base or Office Net Lease: 1. Full Occupancy Gross Up Clause: This clause allows the landlord to calculate the tenant's share of operating expenses based on a hypothetical full occupancy scenario, regardless of the actual occupancy level. This ensures that the tenant pays their proportional share of expenses, irrespective of the vacancies within the building or office space. 2. Partial Occupancy Gross Up Clause: In some cases, the Gross Up Clause may be structured to allow the landlord to adjust the tenant's share of operating expenses based only on the actual occupancy level of the building or office space. This type of clause considers only the occupied area and seeks to fairly distribute costs among the tenants based on their actual usage. 3. Prorate Gross Up Clause: This type of Gross Up Clause considers both the occupied and vacant areas of the building or office space. It calculates the tenant's share of expenses by considering the rental square footage occupied by the tenant in relation to the total rentable square footage of the building. This ensures that the tenant only pays for their proportionate usage of the space, regardless of overall occupancy levels. In conclusion, a Contra Costa California Gross Up Clause is an essential element of any Expense Stop Stipulated Base or Office Net Lease agreement. It ensures fair distribution of operating expenses among tenants, considering factors such as occupancy levels. Different types of Gross Up Clauses, such as Full Occupancy, Partial Occupancy, and Prorate, may be used depending on the specific circumstances of the lease agreement.
