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 Harris Texas Gross up Clause is an essential provision that should be included in an Expense Stop Stipulated Base or Office Net Lease. This clause ensures fairness and balance between the landlord and tenant when it comes to the allocation of operating expenses in commercial leases. By implementing a gross up clause, the tenant is protected from shouldering excessive operating costs, while the landlord can recover a reasonable amount for those expenses. One type of Harris Texas Gross up Clause is the Expense Gross up Clause. In this clause, the tenant's base rent is adjusted proportionately to offset any abnormal expenses incurred by the landlord. This adjustment ensures that the tenant's lease payments remain stable, even if there are unforeseen increases in operating expenses. Another type of Harris Texas Gross up Clause is the Expense Recovery Gross up Clause. This clause enables the landlord to recover any expenses not covered by the tenant's expense stop. It allows the landlord to recoup additional costs by proportionally increasing the tenant's rent, thus maintaining a balanced financial arrangement. Furthermore, the Operating Expense Gross up Clause is designed to account for situations where the building is not fully occupied. This provision stipulates that if the occupancy rate falls below a certain threshold, the expenses incurred in operating the building will be adjusted accordingly. This ensures that the tenant does not bear the burden of expenses incurred due to the landlord's failure to achieve full occupancy. Moreover, the Common Area Maintenance (CAM) Gross up Clause is specific to the maintenance and management costs of common areas shared by multiple tenants within the building. This provision ensures that each tenant's share of CAM expenses is equitable, considering factors like occupancy rates or the total size of occupied space. In conclusion, the Harris Texas Gross up Clause is a vital component of an Expense Stop Stipulated Base or Office Net Lease. Incorporating different types of gross up clauses such as Expense Gross up, Expense Recovery Gross up, Operating Expense Gross up, and CAM Gross up, provides a fair and balanced approach to allocating operating expenses between landlords and tenants in commercial leases.The Harris Texas Gross up Clause is an essential provision that should be included in an Expense Stop Stipulated Base or Office Net Lease. This clause ensures fairness and balance between the landlord and tenant when it comes to the allocation of operating expenses in commercial leases. By implementing a gross up clause, the tenant is protected from shouldering excessive operating costs, while the landlord can recover a reasonable amount for those expenses. One type of Harris Texas Gross up Clause is the Expense Gross up Clause. In this clause, the tenant's base rent is adjusted proportionately to offset any abnormal expenses incurred by the landlord. This adjustment ensures that the tenant's lease payments remain stable, even if there are unforeseen increases in operating expenses. Another type of Harris Texas Gross up Clause is the Expense Recovery Gross up Clause. This clause enables the landlord to recover any expenses not covered by the tenant's expense stop. It allows the landlord to recoup additional costs by proportionally increasing the tenant's rent, thus maintaining a balanced financial arrangement. Furthermore, the Operating Expense Gross up Clause is designed to account for situations where the building is not fully occupied. This provision stipulates that if the occupancy rate falls below a certain threshold, the expenses incurred in operating the building will be adjusted accordingly. This ensures that the tenant does not bear the burden of expenses incurred due to the landlord's failure to achieve full occupancy. Moreover, the Common Area Maintenance (CAM) Gross up Clause is specific to the maintenance and management costs of common areas shared by multiple tenants within the building. This provision ensures that each tenant's share of CAM expenses is equitable, considering factors like occupancy rates or the total size of occupied space. In conclusion, the Harris Texas Gross up Clause is a vital component of an Expense Stop Stipulated Base or Office Net Lease. Incorporating different types of gross up clauses such as Expense Gross up, Expense Recovery Gross up, Operating Expense Gross up, and CAM Gross up, provides a fair and balanced approach to allocating operating expenses between landlords and tenants in commercial leases.
