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.
Mecklenburg North Carolina Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease In a commercial lease agreement, the gross up clause refers to a provision that allows the landlord to "gross up" the tenant's pro rata share of operating expenses for a specific building in order to account for vacancy and below-market leases. This clause ensures that the tenant is responsible for their fair share of expenses, even if there are vacant or under-rented units. There are several types of Mecklenburg North Carolina gross up clauses that can be used in an expense stop stipulated base or office net lease, namely: 1. Proportional Gross up Clause: This type of gross up clause calculates the tenant's share of operating expenses based on the percentage of occupied square footage in the building, excluding vacant or unvented spaces. It ensures that the tenant only bears the burden of expenses related to the space they lease. 2. Building-wide Gross up Clause: In this scenario, the gross up clause takes into account the entire building's vacancy factor. The tenant's pro rata share is based on the total square footage of the building, including vacant spaces. This approach spreads the operating expenses evenly among all tenants, regardless of occupancy rates. 3. Individual Expense Gross up Clause: This variation of the gross up clause allows for the adjustment of each specific operating expense item, such as property taxes or insurance, to reflect potential increases due to vacancies or under-rented spaces. It ensures that the tenant pays their fair share of expenses related to the services and amenities available in the building. When incorporating a gross up clause in a Mecklenburg North Carolina expense stop stipulated base or office net lease, it is crucial to consider the applicable local laws and regulations that may govern such clauses. The clause should be drafted in a clear and explicit manner, outlining the methodology and calculations used for grossing up the tenant's share of expenses. Implementing an appropriate gross up clause not only promotes fairness among tenants but also helps the landlord maintain a consistent revenue stream to cover operating expenses and maintain the property.Mecklenburg North Carolina Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease In a commercial lease agreement, the gross up clause refers to a provision that allows the landlord to "gross up" the tenant's pro rata share of operating expenses for a specific building in order to account for vacancy and below-market leases. This clause ensures that the tenant is responsible for their fair share of expenses, even if there are vacant or under-rented units. There are several types of Mecklenburg North Carolina gross up clauses that can be used in an expense stop stipulated base or office net lease, namely: 1. Proportional Gross up Clause: This type of gross up clause calculates the tenant's share of operating expenses based on the percentage of occupied square footage in the building, excluding vacant or unvented spaces. It ensures that the tenant only bears the burden of expenses related to the space they lease. 2. Building-wide Gross up Clause: In this scenario, the gross up clause takes into account the entire building's vacancy factor. The tenant's pro rata share is based on the total square footage of the building, including vacant spaces. This approach spreads the operating expenses evenly among all tenants, regardless of occupancy rates. 3. Individual Expense Gross up Clause: This variation of the gross up clause allows for the adjustment of each specific operating expense item, such as property taxes or insurance, to reflect potential increases due to vacancies or under-rented spaces. It ensures that the tenant pays their fair share of expenses related to the services and amenities available in the building. When incorporating a gross up clause in a Mecklenburg North Carolina expense stop stipulated base or office net lease, it is crucial to consider the applicable local laws and regulations that may govern such clauses. The clause should be drafted in a clear and explicit manner, outlining the methodology and calculations used for grossing up the tenant's share of expenses. Implementing an appropriate gross up clause not only promotes fairness among tenants but also helps the landlord maintain a consistent revenue stream to cover operating expenses and maintain the property.
