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.
San Jose, California is the third-largest city in California and is located in the heart of Silicon Valley. Known for its booming technology industry, vibrant culture, and excellent quality of life, San Jose is a desirable location for businesses and residents alike. In the context of a real estate lease, a Gross up Clause is a commonly used provision in an Expense Stop Stipulated Base or Office Net Lease. This clause addresses the issue of proportionately allocating expenses among tenants in a multi-tenant building. Essentially, it ensures that each tenant pays their fair share of common area expenses, such as utilities, maintenance, insurance, and taxes. There are different types of San Jose California Gross up Clauses that can be utilized in Expense Stop Stipulated Base or Office Net Leases. Some common variations include: 1. Gross up Clause based on Rentable Square Footage: This clause calculates each tenant's proportionate share based on the square footage they lease in relation to the total rentable square footage of the building. This method ensures that tenants with larger spaces pay a higher share of expenses. 2. Gross up Clause based on Occupancy: This clause determines each tenant's proportionate share based on the number of occupants they have relative to the total building occupancy. It accounts for situations where tenants lease smaller spaces but have higher employee densities, resulting in increased usage and potential expenses. 3. Gross up Clause based on Equal Proportions: This clause assigns an equal share of expenses to each tenant, regardless of their leased space or occupancy. This method simplifies calculations and can be an option for buildings with similar tenant sizes or where individual usage patterns are difficult to determine. 4. Gross up Clause with Variable Factors: Some leases incorporate additional factors that can influence a tenant's share of expenses. For example, a clause may include weighted factors such as operating hours or specific energy usage data to account for differing usage patterns among tenants. In conclusion, the San Jose California Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease is a critical provision for fair allocation of common area expenses among tenants. By utilizing various calculation methods, such as Rentable Square Footage, Occupancy, Equal Proportions, or Variable Factors, landlords and tenants can establish a fair and transparent system for sharing costs in a multi-tenant building in San Jose, California.San Jose, California is the third-largest city in California and is located in the heart of Silicon Valley. Known for its booming technology industry, vibrant culture, and excellent quality of life, San Jose is a desirable location for businesses and residents alike. In the context of a real estate lease, a Gross up Clause is a commonly used provision in an Expense Stop Stipulated Base or Office Net Lease. This clause addresses the issue of proportionately allocating expenses among tenants in a multi-tenant building. Essentially, it ensures that each tenant pays their fair share of common area expenses, such as utilities, maintenance, insurance, and taxes. There are different types of San Jose California Gross up Clauses that can be utilized in Expense Stop Stipulated Base or Office Net Leases. Some common variations include: 1. Gross up Clause based on Rentable Square Footage: This clause calculates each tenant's proportionate share based on the square footage they lease in relation to the total rentable square footage of the building. This method ensures that tenants with larger spaces pay a higher share of expenses. 2. Gross up Clause based on Occupancy: This clause determines each tenant's proportionate share based on the number of occupants they have relative to the total building occupancy. It accounts for situations where tenants lease smaller spaces but have higher employee densities, resulting in increased usage and potential expenses. 3. Gross up Clause based on Equal Proportions: This clause assigns an equal share of expenses to each tenant, regardless of their leased space or occupancy. This method simplifies calculations and can be an option for buildings with similar tenant sizes or where individual usage patterns are difficult to determine. 4. Gross up Clause with Variable Factors: Some leases incorporate additional factors that can influence a tenant's share of expenses. For example, a clause may include weighted factors such as operating hours or specific energy usage data to account for differing usage patterns among tenants. In conclusion, the San Jose California Gross up Clause in an Expense Stop Stipulated Base or Office Net Lease is a critical provision for fair allocation of common area expenses among tenants. By utilizing various calculation methods, such as Rentable Square Footage, Occupancy, Equal Proportions, or Variable Factors, landlords and tenants can establish a fair and transparent system for sharing costs in a multi-tenant building in San Jose, California.
