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 Guam Clause for Grossing Up the Tenant Proportionate Share is a crucial aspect of commercial lease agreements. This clause defines the method through which the tenant's proportionate share of operating expenses will be calculated and adjusted in case there is a change in occupancy levels within the building or complex. When it comes to different types of Guam Clauses for Grossing Up the Tenant Proportionate Share, there are a few variations commonly used: 1. Standard Guam Clause: This is the most common type of Guam Clause, where the tenant's proportionate share is calculated based on the percentage of leased space divided by the total leasable area. The tenant is then responsible for paying their share of operating expenses based on this proportion. 2. Maximum Occupancy Guam Clause: In this type, the tenant's proportionate share is calculated based on the tenant's leased space divided by the total leasable area, but with a cap on the maximum occupancy level. If the actual occupancy level exceeds the cap, the tenant's share will still be calculated based on the capped value. 3. Minimum Occupancy Guam Clause: Conversely, this type of Guam Clause ensures that the tenant's proportionate share is not impacted by a lower occupancy level than expected. If the actual occupancy falls below a certain threshold, the tenant's share is still calculated based on the predetermined minimum occupancy level. 4. Decreasing Guam Clause: This unique clause allows for a reduction in the tenant's proportionate share as the overall occupancy level decreases. It provides tenants with financial flexibility during periods of low occupancy, ensuring they don't pay an excessive share of operating expenses. 5. Increasing Guam Clause: On the contrary, an increasing Guam Clause enables the landlord to increase the tenant's proportionate share as the overall occupancy level rises. This type of clause is typically utilized to protect the landlord's interests and ensure that tenants pay their fair share during peak occupancy periods. In conclusion, the Guam Clause for Grossing Up the Tenant Proportionate Share is vital for both landlords and tenants in commercial lease agreements. It provides a framework for calculating and adjusting the tenant's share of operating expenses based on changes in occupancy levels. By incorporating specific clauses, such as maximum occupancy, minimum occupancy, decreasing, or increasing Guam Clauses, both parties can protect their interests and maintain a fair allocation of expenses.
