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.
Arizona Building Operating Cost Addendum
Category:
State:
Multi-State
Control #:
US-OL19034BB
Format:
Word;
PDF
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The O&M cost estimates should include routine operation and maintenance, major repairs, spares and consumables, staffing, and insurance. Major refurbishment and reconstruction are generally not included in the O&M cost.
In real estate, the operating expense ratio (OER) is a measurement of the cost to operate a piece of property, compared to the income brought in by the property. The operating expense ratio (OER) is calculated by dividing all operating expenses less depreciation by operating income.
Operating costs include direct costs of goods sold (COGS) and other operating expenses?often called selling, general, and administrative (SG&A)?which include rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses.
Frequently referred to as OPEX, operating expenses are all of the costs that go into running a building. These include utilities, repairs and maintenance, exterior work, insurance, management, and property tax.
An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.
An operating expense is an ongoing expense a business incurs during its normal operations, which keeps the company operating effectively. Operating expenses include employee salaries, buildings and utilities, tools, office supplies, materials and equipment and marketing costs.