This office lease form is a supplement regarding the building operating expenses which are escalated to the tenant. This form lists items to be excluded from the calculation of building operating costs.
The Alabama Building Operating Cost Addendum is a legal document used in real estate transactions to outline the specific operating costs associated with renting or leasing a commercial property in Alabama. This addendum is typically used in conjunction with a lease agreement and provides detailed information regarding the expenses that the tenant is responsible for and those that the landlord will cover. Keywords: Alabama, Building Operating Cost Addendum, real estate transactions, operating costs, renting, leasing, commercial property, lease agreement, expenses, tenant, landlord. Types of Alabama Building Operating Cost Addendum: 1. Standard Building Operating Cost Addendum: This is the most common type of addendum used in Alabama for commercial properties. It includes a comprehensive list of operating costs such as property taxes, insurance, maintenance and repairs, utilities, property management fees, and other costs associated with the operation and maintenance of the building. 2. Modified Building Operating Cost Addendum: This type of addendum is used when the landlord and tenant agree to modify certain provisions of the standard addendum. It may include specific amendments to the operating expenses, adjustments to the sharing ratio, or the inclusion/exclusion of certain expenses based on mutual agreement. 3. Percentage Rent Building Operating Cost Addendum: In some cases, landlords may charge a base rent along with an additional percentage of the tenant's gross sales revenue. This addendum incorporates the percentage rent clause into the operating costs, ensuring that the tenant pays their share of operating expenses based on their sales performance. 4. Triple Net Building Operating Cost Addendum: Triple net (NNN) leases are common in commercial real estate. This addendum specifies that the tenant is responsible for paying not only their share of operating costs but also property taxes, insurance, and maintenance expenses directly to the respective vendors, bypassing the landlord. 5. Sublease Building Operating Cost Addendum: When tenants sublease a portion of their leased space to another tenant, a sublease addendum can be used to outline the specific operating costs applicable to the subtenant. This addendum ensures that the subtenant understands their financial responsibilities towards operating expenses. It is important for both landlords and tenants in Alabama to carefully review and understand the specific terms and conditions of the Building Operating Cost Addendum that is being incorporated into their lease agreement. It is advisable to seek legal advice to ensure compliance with Alabama real estate laws and regulations.
