This office lease form is a clause regarding all direct and indirect costs incurred by the landlord in the operation, maintenance, repair, overhaul, and any owner's overhead in connection with the project.
The Illinois Clause Defining Operating Expenses is a legal provision that outlines the specific expenses a landlord can pass on to a tenant in a commercial lease agreement. It details the costs related to the operation and maintenance of the leased premises, which the tenant must bear. In Illinois, there are two primary types of clauses defining operating expenses commonly used in commercial leases: Gross Lease Clause and Triple Net Lease Clause. 1. Gross Lease Clause: Under a Gross Lease Clause, the landlord includes all operating expenses within the base rent. This means that the tenant pays a fixed monthly rent, and the landlord is responsible for covering all expenses related to property operation and maintenance. The tenant is not directly liable for any additional operating expenses incurred during the lease term. 2. Triple Net Lease Clause: Conversely, a Triple Net Lease Clause holds the tenant responsible for paying a portion or all of the operating expenses in addition to the base rent. Examples of common operating expenses that may be listed in the clause include property taxes, property insurance, common area maintenance (CAM) charges, utilities, repairs and maintenance, janitorial services, and more. These expenses are typically calculated based on the tenant's proportionate share of the leased premises compared to the entire property. When entering into a commercial lease agreement in Illinois, it is crucial for both landlords and tenants to carefully review and negotiate the Illinois Clause Defining Operating Expenses. Clear and specific language should be used to identify the types of expenses considered operating expenses and define how they will be calculated and allocated between the parties. Some relevant keywords for this topic may include: — Illinois commercial leas— - Illinois operating expenses — Gross leasClausus— - Triple net lease clause — Common area maintenance charge— - Tenant responsibility — Landlord liabilit— - Lease negotiation — Fixed rent - Properttakexe— - Property insurance — Utility charge— - Repairs and maintenance — Janitorial services.
