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.
Travis Texas Clause for Grossing Up the Tenant Proportionate Share refers to a specific provision within a commercial lease agreement that outlines the obligations and responsibilities of tenants and landlords in regard to adjusting the tenant's proportionate share of expenses related to operating and maintaining the property. The purpose of the Travis Texas Clause for Grossing Up the Tenant Proportionate Share is to ensure fairness in allocating expenses among the tenants in a multi-tenant property where the total expenses fluctuate. This clause addresses the variation in occupancy levels by allowing the landlord to gross up the tenant's share based on a specified occupancy level, regardless of the actual occupancy. There are generally two types of Travis Texas Clause for Grossing Up the Tenant Proportionate Share: 1. Flat Expense Stop: This is one of the common types of Travis Texas Clause for Grossing Up the Tenant Proportionate Share. In this scenario, the landlord establishes a fixed expense stop, which represents the maximum amount of expenses that a tenant is responsible for. If the total expenses exceed this amount, the excess is spread proportionately among the tenants. For example, if the flat expense stop is set at $10,000 per month and the total expenses for the property are $12,000, with three tenants, each tenant's share would be $4,000 ($12,000 divided by three). However, if the total expenses were $15,000, the excess of $3,000 would be divided among the tenants, resulting in an adjusted share of $5,000 each. 2. Graduated Expense Stop: This is another type of Travis Texas Clause for Grossing Up the Tenant Proportionate Share. Unlike the flat expense stop, the graduated expense stop varies based on the occupancy levels in the property. As the occupancy levels increase, the expense stop also increases. This method is often used in properties with significant fluctuations in occupancy. For example, if the graduated expense stop is set at $10,000 when the occupancy is below 50%, it may increase to $15,000 when the occupancy reaches 70%, and further to $20,000 when the occupancy exceeds 90%. This allows landlords to adjust the tenant's proportionate share based on the actual occupancy, ensuring accurate allocation of expenses. In conclusion, the Travis Texas Clause for Grossing Up the Tenant Proportionate Share plays a crucial role in commercial lease agreements by ensuring fair allocation of expenses among tenants. Whether it is a flat expense stop or a graduated expense stop, this provision helps establish transparent guidelines for adjusting the tenant's share based on occupancy levels.Travis Texas Clause for Grossing Up the Tenant Proportionate Share refers to a specific provision within a commercial lease agreement that outlines the obligations and responsibilities of tenants and landlords in regard to adjusting the tenant's proportionate share of expenses related to operating and maintaining the property. The purpose of the Travis Texas Clause for Grossing Up the Tenant Proportionate Share is to ensure fairness in allocating expenses among the tenants in a multi-tenant property where the total expenses fluctuate. This clause addresses the variation in occupancy levels by allowing the landlord to gross up the tenant's share based on a specified occupancy level, regardless of the actual occupancy. There are generally two types of Travis Texas Clause for Grossing Up the Tenant Proportionate Share: 1. Flat Expense Stop: This is one of the common types of Travis Texas Clause for Grossing Up the Tenant Proportionate Share. In this scenario, the landlord establishes a fixed expense stop, which represents the maximum amount of expenses that a tenant is responsible for. If the total expenses exceed this amount, the excess is spread proportionately among the tenants. For example, if the flat expense stop is set at $10,000 per month and the total expenses for the property are $12,000, with three tenants, each tenant's share would be $4,000 ($12,000 divided by three). However, if the total expenses were $15,000, the excess of $3,000 would be divided among the tenants, resulting in an adjusted share of $5,000 each. 2. Graduated Expense Stop: This is another type of Travis Texas Clause for Grossing Up the Tenant Proportionate Share. Unlike the flat expense stop, the graduated expense stop varies based on the occupancy levels in the property. As the occupancy levels increase, the expense stop also increases. This method is often used in properties with significant fluctuations in occupancy. For example, if the graduated expense stop is set at $10,000 when the occupancy is below 50%, it may increase to $15,000 when the occupancy reaches 70%, and further to $20,000 when the occupancy exceeds 90%. This allows landlords to adjust the tenant's proportionate share based on the actual occupancy, ensuring accurate allocation of expenses. In conclusion, the Travis Texas Clause for Grossing Up the Tenant Proportionate Share plays a crucial role in commercial lease agreements by ensuring fair allocation of expenses among tenants. Whether it is a flat expense stop or a graduated expense stop, this provision helps establish transparent guidelines for adjusting the tenant's share based on occupancy levels.
