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 Palm Beach Florida Gross up Clause is an important provision in an Expense Stop Stipulated Base or Office Net Lease. It is designed to spread out or "gross up" the operating expenses incurred by the landlord and passed on to the tenant. This clause ensures that tenants are only responsible for their fair share of expenses based on their leased space, rather than bearing the burden of unoccupied or underutilized areas within the property. There are several types of Palm Beach Florida Gross up Clauses commonly used in commercial leases: 1. Full Floor Gross up Clause: This type of clause is applicable when a tenant leases an entire floor in a multi-tenant building. In such a case, all operating expenses of common areas, such as hallways, restrooms, and elevators, are allocated solely to that tenant. 2. Partial Floor Gross up Clause: When a tenant occupies a portion of a floor within a building, this clause allocates a percentage of the common area expenses to the tenant, determined by the ratio of the leased square footage to the total square footage of all leased and common areas on that floor. 3. Building Gross up Clause: This clause is used when a tenant leases an entire freestanding building. Here, the tenant bears all the operating expenses related to the entire property, including common areas and any unoccupied spaces. The purpose of these Palm Beach Florida Gross up Clauses is to ensure fairness and equitable distribution of operating expenses among tenants. By utilizing these clauses, landlords can accurately allocate expenses based on leased spaces rather than charging tenants for vacant or underutilized areas. It is crucial for both landlords and tenants to include a well-defined and comprehensive Gross up Clause in their lease agreements to avoid disputes and maintain transparency in expense allocation.A Palm Beach Florida Gross up Clause is an important provision in an Expense Stop Stipulated Base or Office Net Lease. It is designed to spread out or "gross up" the operating expenses incurred by the landlord and passed on to the tenant. This clause ensures that tenants are only responsible for their fair share of expenses based on their leased space, rather than bearing the burden of unoccupied or underutilized areas within the property. There are several types of Palm Beach Florida Gross up Clauses commonly used in commercial leases: 1. Full Floor Gross up Clause: This type of clause is applicable when a tenant leases an entire floor in a multi-tenant building. In such a case, all operating expenses of common areas, such as hallways, restrooms, and elevators, are allocated solely to that tenant. 2. Partial Floor Gross up Clause: When a tenant occupies a portion of a floor within a building, this clause allocates a percentage of the common area expenses to the tenant, determined by the ratio of the leased square footage to the total square footage of all leased and common areas on that floor. 3. Building Gross up Clause: This clause is used when a tenant leases an entire freestanding building. Here, the tenant bears all the operating expenses related to the entire property, including common areas and any unoccupied spaces. The purpose of these Palm Beach Florida Gross up Clauses is to ensure fairness and equitable distribution of operating expenses among tenants. By utilizing these clauses, landlords can accurately allocate expenses based on leased spaces rather than charging tenants for vacant or underutilized areas. It is crucial for both landlords and tenants to include a well-defined and comprehensive Gross up Clause in their lease agreements to avoid disputes and maintain transparency in expense allocation.
