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 Indiana Building Operating Cost Addendum is a legal document used in the real estate industry that outlines the responsibilities and obligations related to building operating costs for commercial properties in the state of Indiana. This addendum is commonly included in lease agreements and is designed to ensure transparency and fairness between the landlord and tenant regarding the payment of operating expenses. In general, the addendum specifies the types of costs that are considered operating expenses, which typically include maintenance, repairs, property taxes, insurance premiums, utilities, and administrative expenses. It also provides a detailed explanation of how these costs will be calculated, allocated, and passed on to the tenant. One type of Indiana Building Operating Cost Addendum is the Single-Tenant Addendum, which is typically used for buildings that are occupied by a single tenant. This addendum focuses on the specific cost sharing arrangements and responsibilities for that particular tenant. Another type is the Multi-Tenant Addendum, which is used when multiple tenants occupy a building or space within a building. This addendum outlines how the operating costs will be allocated among the multiple tenants based on various factors such as square footage, occupancy levels, or predetermined formulas. The Indiana Building Operating Cost Addendum is essential for both landlords and tenants as it establishes clear guidelines and expectations for the payment of operating expenses. By including this addendum in the lease agreement, both parties can avoid potential disputes and ensure a fair and equitable distribution of costs associated with maintaining and operating the property.
