This office lease clause states the conditions under which the landlord can and can not furnish any particular item(s) of work or service which would constitute an expense to portions of the Building during the comparative year.
The Alameda California Clause for Grossing Up the Tenant Proportionate Share is a provision frequently included in commercial leases to account for changes in operating expenses throughout the lease term. This clause typically aims to ensure that tenants are not unfairly burdened with the increasing costs of maintaining and operating the property. The Alameda California Clause for Grossing Up the Tenant Proportionate Share encompasses various aspects and may have different types depending on the lease agreement. Below are some common types: 1. Fixed Cost Gross-Up: In this type, the gross-up calculation is based on a fixed percentage increase annually or periodically. For example, the tenant's proportionate share might be adjusted by an additional 3% each year to account for rising operating expenses. 2. Expense Ratio Gross-Up: This type of gross-up takes into account the tenant's proportionate share based on the percentage of their leased area in comparison to the total leasable area. It ensures that tenants contribute their fair portion towards the overall operating expenses. 3. Base Year Gross-Up: Here, the gross-up calculation starts from a predetermined base year. The tenant's proportionate share is adjusted based on any increase in operating expenses above the base year. For instance, if the base year's total operating expenses were $100,000, and the subsequent year's expenses amounted to $120,000, the tenant's proportionate share would be increased accordingly. 4. Operating Expense Gross-Up: This type of gross-up considers all the operating expenses incurred by the landlord and apportions them among the tenants based on their proportional usage. It ensures a fair distribution of expenses and prevents tenants from shouldering an unfair burden compared to others. Overall, the Alameda California Clause for Grossing Up the Tenant Proportionate Share serves to maintain equity among tenants, ensuring that increases in operating expenses are proportionately distributed based on the agreed-upon formula in the lease agreement. This provision safeguards both the landlord's ability to cover rising costs and the tenant's protection from sudden or excessive increases in their share of expenses.The Alameda California Clause for Grossing Up the Tenant Proportionate Share is a provision frequently included in commercial leases to account for changes in operating expenses throughout the lease term. This clause typically aims to ensure that tenants are not unfairly burdened with the increasing costs of maintaining and operating the property. The Alameda California Clause for Grossing Up the Tenant Proportionate Share encompasses various aspects and may have different types depending on the lease agreement. Below are some common types: 1. Fixed Cost Gross-Up: In this type, the gross-up calculation is based on a fixed percentage increase annually or periodically. For example, the tenant's proportionate share might be adjusted by an additional 3% each year to account for rising operating expenses. 2. Expense Ratio Gross-Up: This type of gross-up takes into account the tenant's proportionate share based on the percentage of their leased area in comparison to the total leasable area. It ensures that tenants contribute their fair portion towards the overall operating expenses. 3. Base Year Gross-Up: Here, the gross-up calculation starts from a predetermined base year. The tenant's proportionate share is adjusted based on any increase in operating expenses above the base year. For instance, if the base year's total operating expenses were $100,000, and the subsequent year's expenses amounted to $120,000, the tenant's proportionate share would be increased accordingly. 4. Operating Expense Gross-Up: This type of gross-up considers all the operating expenses incurred by the landlord and apportions them among the tenants based on their proportional usage. It ensures a fair distribution of expenses and prevents tenants from shouldering an unfair burden compared to others. Overall, the Alameda California Clause for Grossing Up the Tenant Proportionate Share serves to maintain equity among tenants, ensuring that increases in operating expenses are proportionately distributed based on the agreed-upon formula in the lease agreement. This provision safeguards both the landlord's ability to cover rising costs and the tenant's protection from sudden or excessive increases in their share of expenses.
