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.
Santa Clara, California is a bustling city located in the heart of Silicon Valley. Known for its thriving tech industry, innovative companies, and numerous attractions, Santa Clara is a sought-after location for businesses and residents alike. In the context of a commercial lease, the gross up clause refers to a provision that allows for the adjustment of certain expenses to account for fluctuations in occupancy and operational costs. This clause is particularly important in expense stop stipulated base or office net leases, as it ensures fair distribution of expenses among tenants. There are several types of Santa Clara, California gross up clauses that can be utilized in an expense stop stipulated base or office net lease: 1. Direct Expense Gross Up: This type of gross up clause enables landlords to adjust expenses directly attributed to the tenant's leased space. These expenses may include utilities, maintenance, repairs, and insurance. 2. Indirect Expense Gross Up: This clause allows the landlord to adjust expenses that are indirectly related to the tenant's leased space. Examples of indirect expenses typically include property taxes, common area maintenance charges, and management fees. 3. Full Building Gross Up: In a full building gross up clause, the landlord calculates and allocates expenses for the entire building, distributing them among all the tenants based on their respective square footage. This type of gross up clause ensures a fair and equitable sharing of expenses among all occupants. 4. Partial Building Gross Up: This clause applies when a particular portion or floor of a building is leased by a tenant. The expenses for that specific area are grossed up, taking into account the tenant's occupancy as well as common area expenses. In Santa Clara, California, the gross up clause is essential for both landlords and tenants to maintain transparency and fairness in lease agreements. It allows for a more accurate calculation of expenses, ensures equitable sharing, and protects both parties' interests. It is vital for both landlords and tenants to carefully review and negotiate the specific terms of the gross up clause in their lease to avoid any misunderstandings or disputes in the future.
Santa Clara, California is a bustling city located in the heart of Silicon Valley. Known for its thriving tech industry, innovative companies, and numerous attractions, Santa Clara is a sought-after location for businesses and residents alike. In the context of a commercial lease, the gross up clause refers to a provision that allows for the adjustment of certain expenses to account for fluctuations in occupancy and operational costs. This clause is particularly important in expense stop stipulated base or office net leases, as it ensures fair distribution of expenses among tenants. There are several types of Santa Clara, California gross up clauses that can be utilized in an expense stop stipulated base or office net lease: 1. Direct Expense Gross Up: This type of gross up clause enables landlords to adjust expenses directly attributed to the tenant's leased space. These expenses may include utilities, maintenance, repairs, and insurance. 2. Indirect Expense Gross Up: This clause allows the landlord to adjust expenses that are indirectly related to the tenant's leased space. Examples of indirect expenses typically include property taxes, common area maintenance charges, and management fees. 3. Full Building Gross Up: In a full building gross up clause, the landlord calculates and allocates expenses for the entire building, distributing them among all the tenants based on their respective square footage. This type of gross up clause ensures a fair and equitable sharing of expenses among all occupants. 4. Partial Building Gross Up: This clause applies when a particular portion or floor of a building is leased by a tenant. The expenses for that specific area are grossed up, taking into account the tenant's occupancy as well as common area expenses. In Santa Clara, California, the gross up clause is essential for both landlords and tenants to maintain transparency and fairness in lease agreements. It allows for a more accurate calculation of expenses, ensures equitable sharing, and protects both parties' interests. It is vital for both landlords and tenants to carefully review and negotiate the specific terms of the gross up clause in their lease to avoid any misunderstandings or disputes in the future.
