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 King Washington Gross up Clause is a crucial component often included in an Expense Stop Stipulated Base or Office Net Lease agreement. It establishes how certain expenses are calculated and allocated among the tenants and landlords of a commercial property. This clause helps ensure fairness and transparency in expense allocation, especially when there are different types of leases involved. There are several types of King Washington Gross up Clauses commonly used in Expense Stop Stipulated Base or Office Net Lease agreements. These include the following: 1. Full Gross up Clause: This type of clause specifies that expenses for the property will be calculated as if the property is fully occupied, regardless of the actual occupancy level. The landlord is responsible for covering any difference between the actual expenses and the pro rata share of expenses based on full occupancy. 2. Partial Gross up Clause: In this case, the expenses are calculated based on a specified level of occupancy, usually the average occupancy for the property or a predetermined standard. If the property's occupancy falls below this specified level, the landlord will gross up the expenses to account for the difference. 3. Escalation Gross up Clause: This clause takes into account the escalation or increase in expenses over time. It ensures that the expenses considered in the lease are grossed up to reflect any increase, protecting the tenants from suddenly shouldering a significant rise in expenses. 4. Stop Loss Gross up Clause: This type of clause sets a cap on the expenses that a tenant is required to pay. If the expenses go beyond the specified limit, the landlord is responsible for covering the excess amount. It provides tenants with financial protection by ensuring they aren't burdened with unreasonably high expenses. In conclusion, the King Washington Gross up Clause is an essential aspect of an Expense Stop Stipulated Base or Office Net Lease agreement. It aims to determine how expenses are calculated and allocated, ensuring fairness and financial protection for both tenants and landlords. Different types of clauses such as Full Gross up, Partial Gross up, Escalation Gross up, and Stop Loss Gross up can be utilized based on the specific circumstances of the lease.The King Washington Gross up Clause is a crucial component often included in an Expense Stop Stipulated Base or Office Net Lease agreement. It establishes how certain expenses are calculated and allocated among the tenants and landlords of a commercial property. This clause helps ensure fairness and transparency in expense allocation, especially when there are different types of leases involved. There are several types of King Washington Gross up Clauses commonly used in Expense Stop Stipulated Base or Office Net Lease agreements. These include the following: 1. Full Gross up Clause: This type of clause specifies that expenses for the property will be calculated as if the property is fully occupied, regardless of the actual occupancy level. The landlord is responsible for covering any difference between the actual expenses and the pro rata share of expenses based on full occupancy. 2. Partial Gross up Clause: In this case, the expenses are calculated based on a specified level of occupancy, usually the average occupancy for the property or a predetermined standard. If the property's occupancy falls below this specified level, the landlord will gross up the expenses to account for the difference. 3. Escalation Gross up Clause: This clause takes into account the escalation or increase in expenses over time. It ensures that the expenses considered in the lease are grossed up to reflect any increase, protecting the tenants from suddenly shouldering a significant rise in expenses. 4. Stop Loss Gross up Clause: This type of clause sets a cap on the expenses that a tenant is required to pay. If the expenses go beyond the specified limit, the landlord is responsible for covering the excess amount. It provides tenants with financial protection by ensuring they aren't burdened with unreasonably high expenses. In conclusion, the King Washington Gross up Clause is an essential aspect of an Expense Stop Stipulated Base or Office Net Lease agreement. It aims to determine how expenses are calculated and allocated, ensuring fairness and financial protection for both tenants and landlords. Different types of clauses such as Full Gross up, Partial Gross up, Escalation Gross up, and Stop Loss Gross up can be utilized based on the specific circumstances of the lease.
