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 Franklin Ohio Gross Up Clause is an essential component of an Expense Stop Stipulated Base or Office Net Lease. This clause ensures that expenses related to the shared areas of a property are equitably distributed among the tenants. It prevents any disproportionate burden being placed on a single tenant and promotes fairness. There are different types of Franklin Ohio Gross Up Clauses that should be considered based on the specific lease agreement. These are: 1. Proportional Gross-Up Clause: This type of clause ensures that each tenant contributes to the expenses based on their proportionate share of the leased space. The expenses are divided in accordance with the tenant's square footage, ensuring an equitable distribution of costs. 2. Expense Stop Gross-Up Clause: This clause allows the landlord to cover or "gross up" any additional expenses beyond the predetermined expense stop. An expense stop is a pre-defined cap on expenses that the tenant is responsible for bearing. If the actual expenses exceed this limit, the landlord can gross up the excess amount to ensure the tenant's burden remains within the agreed-upon limit. 3. Gross-Up based on Building Occupancy: In some cases, the gross-up calculation can be based on the occupancy level of the entire building rather than individual tenant square footage. This method ensures that expenses are distributed fairly among tenants, taking into account the varying occupancy rates. 4. Gross-Up based on Rentable Square Footage: This type of clause calculates the expense allocation based on the rentable square footage of each tenant. It takes into consideration factors such as common areas, shared facilities, and amenities. This method ensures that tenants paying higher rent due to larger spaces contribute proportionally more towards shared expenses. 5. Flat Rate Gross-Up Clause: This clause specifies a fixed percentage or flat rate that is applied uniformly to all tenants. It simplifies the calculation process and ensures each tenant contributes equally to shared expenses, regardless of the size or occupancy levels. When considering which type of Franklin Ohio Gross Up Clause to include in an Expense Stop Stipulated Base or Office Net Lease, it is essential to thoroughly review the lease agreement and consult with legal professionals to ensure fairness and compliance with local regulations.The Franklin Ohio Gross Up Clause is an essential component of an Expense Stop Stipulated Base or Office Net Lease. This clause ensures that expenses related to the shared areas of a property are equitably distributed among the tenants. It prevents any disproportionate burden being placed on a single tenant and promotes fairness. There are different types of Franklin Ohio Gross Up Clauses that should be considered based on the specific lease agreement. These are: 1. Proportional Gross-Up Clause: This type of clause ensures that each tenant contributes to the expenses based on their proportionate share of the leased space. The expenses are divided in accordance with the tenant's square footage, ensuring an equitable distribution of costs. 2. Expense Stop Gross-Up Clause: This clause allows the landlord to cover or "gross up" any additional expenses beyond the predetermined expense stop. An expense stop is a pre-defined cap on expenses that the tenant is responsible for bearing. If the actual expenses exceed this limit, the landlord can gross up the excess amount to ensure the tenant's burden remains within the agreed-upon limit. 3. Gross-Up based on Building Occupancy: In some cases, the gross-up calculation can be based on the occupancy level of the entire building rather than individual tenant square footage. This method ensures that expenses are distributed fairly among tenants, taking into account the varying occupancy rates. 4. Gross-Up based on Rentable Square Footage: This type of clause calculates the expense allocation based on the rentable square footage of each tenant. It takes into consideration factors such as common areas, shared facilities, and amenities. This method ensures that tenants paying higher rent due to larger spaces contribute proportionally more towards shared expenses. 5. Flat Rate Gross-Up Clause: This clause specifies a fixed percentage or flat rate that is applied uniformly to all tenants. It simplifies the calculation process and ensures each tenant contributes equally to shared expenses, regardless of the size or occupancy levels. When considering which type of Franklin Ohio Gross Up Clause to include in an Expense Stop Stipulated Base or Office Net Lease, it is essential to thoroughly review the lease agreement and consult with legal professionals to ensure fairness and compliance with local regulations.
