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 Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share is an important provision in commercial lease agreements that pertains to rent and operating expenses. This clause is designed to ensure that the landlord receives a fair and equitable share of expenses incurred in operating the leased property, considering changes in the area's economic conditions and costs over time. In simple terms, the clause allows the landlord to adjust the tenant's proportionate share of expenses to account for any increase in operating costs that may arise during the lease term. This adjustment is known as the "gross-up" and aims to maintain a fair distribution of costs between the tenant and the landlord. The Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share typically involves the following elements: 1. Calculation Method: The clause may specify the method used to determine the gross-up, such as using the Consumer Price Index (CPI) or an agreed-upon formula. This ensures consistency and transparency in determining the adjustments. 2. Base Year: The clause usually establishes a base year against which future operating expenses will be compared to determine the increase. The base year is typically the first year of the lease or a predetermined year mutually agreed upon by both parties. 3. Notice and Timing: The clause should outline the timelines and notification requirements for notifying the tenant of the adjusted expenses. This ensures that the tenant has sufficient notice and can plan their budget accordingly. 4. Qualifying Expenses: The clause may detail which operating expenses are eligible for gross-up calculations. These expenses can include property taxes, insurance premiums, common area maintenance fees, utilities, and property management fees. It's important to note that there might be variations or additional provisions within the Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share. Specific clauses may be named differently or incorporate unique stipulations based on the agreement reached between the landlord and tenant. Hence, it is advisable to review the lease agreement thoroughly while considering all the relevant terms and conditions.The Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share is an important provision in commercial lease agreements that pertains to rent and operating expenses. This clause is designed to ensure that the landlord receives a fair and equitable share of expenses incurred in operating the leased property, considering changes in the area's economic conditions and costs over time. In simple terms, the clause allows the landlord to adjust the tenant's proportionate share of expenses to account for any increase in operating costs that may arise during the lease term. This adjustment is known as the "gross-up" and aims to maintain a fair distribution of costs between the tenant and the landlord. The Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share typically involves the following elements: 1. Calculation Method: The clause may specify the method used to determine the gross-up, such as using the Consumer Price Index (CPI) or an agreed-upon formula. This ensures consistency and transparency in determining the adjustments. 2. Base Year: The clause usually establishes a base year against which future operating expenses will be compared to determine the increase. The base year is typically the first year of the lease or a predetermined year mutually agreed upon by both parties. 3. Notice and Timing: The clause should outline the timelines and notification requirements for notifying the tenant of the adjusted expenses. This ensures that the tenant has sufficient notice and can plan their budget accordingly. 4. Qualifying Expenses: The clause may detail which operating expenses are eligible for gross-up calculations. These expenses can include property taxes, insurance premiums, common area maintenance fees, utilities, and property management fees. It's important to note that there might be variations or additional provisions within the Wake North Carolina Clause for Grossing Up the Tenant Proportionate Share. Specific clauses may be named differently or incorporate unique stipulations based on the agreement reached between the landlord and tenant. Hence, it is advisable to review the lease agreement thoroughly while considering all the relevant terms and conditions.
