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 Houston Texas Clause for Grossing Up the Tenant Proportionate Share is an important provision often included in commercial leases to address potential increases in operating expenses. This clause helps protect the tenant from bearing an unfair portion of the building's operating expenses, especially in scenarios where the property is not fully occupied. In essence, the Grossing Up clause ensures that the tenant only pays their proportionate share of expenses based on the building's full occupancy. If the building is not fully leased, the landlord would "gross up" the tenant's share to account for the potential expenses that would be incurred if the property were fully occupied. There are different types of Houston Texas Clauses for Grossing Up the Tenant Proportionate Share, including: 1. Basic Gross-Up Clause: This is the most commonly used clause and typically states that the tenant's share of operating expenses will be grossed up to reflect the ratio of occupied square footage to the total rentable square footage of the building. 2. Modified Gross-Up Clause: This clause allows for modifications to the basic gross-up calculation based on specific lease terms. For example, it may take into account exclusions or caps on certain expenses or provide for a different calculation method. 3. Expense Stop Gross-Up Clause: In this type of gross-up provision, the tenant's share will only be grossed up if the building's total operating expenses exceed a specified amount known as the expense stop. This prevents the tenant from paying an increased share if expenses remain under the expense stop limit. 4. Expense Reconciliation Clause: This clause requires the landlord to provide the tenant with a detailed annual statement of actual operating expenses and compares them to the projected expenses used for grossing up calculations. Any overpayment or underpayment by the tenant is adjusted in subsequent lease periods. The inclusion of a specific gross-up clause in commercial leases helps ensure fairness and transparency in allocating operating expenses between tenants, particularly in circumstances where the building has vacant units. By understanding the different types of Houston Texas Clauses for Grossing Up the Tenant Proportionate Share, both landlords and tenants can negotiate lease terms that align with their specific needs and protect their interests.The Houston Texas Clause for Grossing Up the Tenant Proportionate Share is an important provision often included in commercial leases to address potential increases in operating expenses. This clause helps protect the tenant from bearing an unfair portion of the building's operating expenses, especially in scenarios where the property is not fully occupied. In essence, the Grossing Up clause ensures that the tenant only pays their proportionate share of expenses based on the building's full occupancy. If the building is not fully leased, the landlord would "gross up" the tenant's share to account for the potential expenses that would be incurred if the property were fully occupied. There are different types of Houston Texas Clauses for Grossing Up the Tenant Proportionate Share, including: 1. Basic Gross-Up Clause: This is the most commonly used clause and typically states that the tenant's share of operating expenses will be grossed up to reflect the ratio of occupied square footage to the total rentable square footage of the building. 2. Modified Gross-Up Clause: This clause allows for modifications to the basic gross-up calculation based on specific lease terms. For example, it may take into account exclusions or caps on certain expenses or provide for a different calculation method. 3. Expense Stop Gross-Up Clause: In this type of gross-up provision, the tenant's share will only be grossed up if the building's total operating expenses exceed a specified amount known as the expense stop. This prevents the tenant from paying an increased share if expenses remain under the expense stop limit. 4. Expense Reconciliation Clause: This clause requires the landlord to provide the tenant with a detailed annual statement of actual operating expenses and compares them to the projected expenses used for grossing up calculations. Any overpayment or underpayment by the tenant is adjusted in subsequent lease periods. The inclusion of a specific gross-up clause in commercial leases helps ensure fairness and transparency in allocating operating expenses between tenants, particularly in circumstances where the building has vacant units. By understanding the different types of Houston Texas Clauses for Grossing Up the Tenant Proportionate Share, both landlords and tenants can negotiate lease terms that align with their specific needs and protect their interests.
