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 San Bernardino California Clause for Grossing Up the Tenant Proportionate Share is a crucial aspect of commercial leasing agreements in the region. It pertains to the calculation and adjustment of a tenant's proportionate share of expenses, especially those related to operating costs, taxes, and insurance. The clause ensures that the tenant's share accurately reflects their occupancy and usage of the leased space. By employing grossing up calculations, the tenant is responsible for paying their fair portion of shared expenses, considering any vacant spaces or common areas. There are various types of San Bernardino California Clauses for Grossing Up the Tenant Proportionate Share, including: 1. Direct Proportionate Share Gross-up: This method involves adjusting the tenant's share of expenses based on the actual occupancy of the building or complex. If there are vacant spaces, the tenant's share is determined by considering only the occupied square footage. This clause ensures that tenants pay their fair portion and accounts for any unused areas. 2. Market Proportionate Share Gross-up: This approach factors in market conditions and assumes a hypothetical level of occupancy. It considers a specific level of occupancy that the landlord may anticipate achieving, thereby establishing a baseline for calculating the tenant's share of expenses. This type of clause provides flexibility for landlords in assessing the tenant's responsibility if the anticipated occupancy level is not met. 3. Expense Stop Gross-up: In this scenario, the clause sets a threshold or expense stop, beyond which the tenant is responsible for a proportionate share of expenses. For example, if the landlord covers up to $10 per square foot for operating costs, any expenses beyond this amount will be proportionately shared by the tenant. This type of clause allows for cost control and protects the tenant from excessive expense escalation. 4. Tenant Improvement (TI) Proportionate Share Gross-up: This clause comes into play when the tenant performs significant alterations or improvements to the leased space. The expense of such improvements may not be included in the operating costs, taxes, or insurance covered by the tenant's proportionate share. Instead, the clause allows for the grossing up of the tenant's proportionate share specifically for these improvement-related expenses. In conclusion, the San Bernardino California Clause for Grossing Up the Tenant Proportionate Share specifies the method used for determining a tenant's fair and accurate share of expenses in a commercial leasing agreement. Whether through direct proportionate share gross-up, market proportionate share gross-up, expense stop gross-up, or TI proportionate share gross-up, these clauses ensure a balanced and equitable distribution of shared expenses.The San Bernardino California Clause for Grossing Up the Tenant Proportionate Share is a crucial aspect of commercial leasing agreements in the region. It pertains to the calculation and adjustment of a tenant's proportionate share of expenses, especially those related to operating costs, taxes, and insurance. The clause ensures that the tenant's share accurately reflects their occupancy and usage of the leased space. By employing grossing up calculations, the tenant is responsible for paying their fair portion of shared expenses, considering any vacant spaces or common areas. There are various types of San Bernardino California Clauses for Grossing Up the Tenant Proportionate Share, including: 1. Direct Proportionate Share Gross-up: This method involves adjusting the tenant's share of expenses based on the actual occupancy of the building or complex. If there are vacant spaces, the tenant's share is determined by considering only the occupied square footage. This clause ensures that tenants pay their fair portion and accounts for any unused areas. 2. Market Proportionate Share Gross-up: This approach factors in market conditions and assumes a hypothetical level of occupancy. It considers a specific level of occupancy that the landlord may anticipate achieving, thereby establishing a baseline for calculating the tenant's share of expenses. This type of clause provides flexibility for landlords in assessing the tenant's responsibility if the anticipated occupancy level is not met. 3. Expense Stop Gross-up: In this scenario, the clause sets a threshold or expense stop, beyond which the tenant is responsible for a proportionate share of expenses. For example, if the landlord covers up to $10 per square foot for operating costs, any expenses beyond this amount will be proportionately shared by the tenant. This type of clause allows for cost control and protects the tenant from excessive expense escalation. 4. Tenant Improvement (TI) Proportionate Share Gross-up: This clause comes into play when the tenant performs significant alterations or improvements to the leased space. The expense of such improvements may not be included in the operating costs, taxes, or insurance covered by the tenant's proportionate share. Instead, the clause allows for the grossing up of the tenant's proportionate share specifically for these improvement-related expenses. In conclusion, the San Bernardino California Clause for Grossing Up the Tenant Proportionate Share specifies the method used for determining a tenant's fair and accurate share of expenses in a commercial leasing agreement. Whether through direct proportionate share gross-up, market proportionate share gross-up, expense stop gross-up, or TI proportionate share gross-up, these clauses ensure a balanced and equitable distribution of shared expenses.
