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.
Georgia Clause for Grossing Up the Tenant Proportionate Share is a crucial aspect of commercial lease agreements in the state of Georgia. This clause addresses the method and calculations used to ensure that tenants are paying their fair share of operating expenses, particularly when it comes to common areas shared by multiple tenants within a commercial property. The purpose of the Georgia Clause for Grossing Up the Tenant Proportionate Share is to account for potential vacancy or underutilization of the property's rentable space. It aims to fairly distribute the costs of operating expenses among the tenants to avoid burdening one tenant with the entire cost of common area expenses. In practice, the clause allows the landlord to calculate the tenant's proportionate share of operating expenses based on the assumption that all rentable spaces are leased and fully occupied, even if this is not the case in reality. This ensures that the tenant's share is not unfairly increased due to the presence of unleashed spaces within the property. The specific language and terms used in the Georgia Clause for Grossing Up the Tenant Proportionate Share may vary depending on the lease agreement and the preferences of both the landlord and the tenant. Here are a few common types of Georgia Clauses for Grossing Up the Tenant Proportionate Share: 1. Full Gross-Up Clause: This type of clause allows for a complete gross-up of the tenant's proportionate share. It means that the operating expenses will be calculated as if the property is fully leased and occupied, regardless of the actual occupancy. 2. Partial Gross-Up Clause: In contrast to the full gross-up clause, this type of clause allows for a partial gross-up of the tenant's proportionate share. The operating expenses are calculated based on a predetermined percentage of assumed occupancy, which may be lower than 100%. 3. Fixed Gross-Up Rate Clause: This clause includes a fixed rate to determine the percentage of gross-up for the tenant's proportionate share. For example, if the fixed rate is set at 90%, the tenant's proportionate share will be calculated based on the assumption that the property is 90% leased and occupied. It's important for both landlords and tenants to carefully review and negotiate the terms of the Georgia Clause for Grossing Up the Tenant Proportionate Share to ensure fairness and clarity in the lease agreement. Seeking legal advice or consulting a real estate professional can be beneficial in understanding the implications and potential adjustments required by this clause.
