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 Indiana Clause for Grossing Up the Tenant Proportionate Share is an important provision included in commercial lease agreements. It ensures that the tenant's share of operating expenses, such as taxes, insurance, and common area maintenance (CAM) charges, is accurately determined and adjusted based on the total occupancy of the property. This clause helps maintain fairness and transparency between tenants sharing common spaces and facilities in a building or complex. The purpose of the Indiana Clause for Grossing Up the Tenant Proportionate Share is to account for variations in occupancy levels throughout the year. Since operating expenses are often calculated based on the total square footage leased by tenants, the provision enables adjustments to be made when the property is not fully occupied. There are different types of Indiana Clauses for Grossing Up the Tenant Proportionate Share that can be included in a lease agreement, depending on the specific needs and circumstances of the parties involved: 1. Full Gross-Up: This type of Indiana Clause ensures that the tenant's share of expenses is based on the assumption that the property is fully occupied, regardless of the actual occupancy level. This means that the tenant will be responsible for a proportionate share of expenses that would have been incurred if the property were completely leased. 2. Partial Gross-Up: In this case, the Indiana Clause allows for a partial adjustment of the tenant's proportionate share based on the actual occupancy level. The expenses are grossed up only to the extent that the property falls short of full occupancy. This type of clause offers more flexibility for tenants, as they are not fully responsible for expenses that would have been incurred at full occupancy. 3. No Gross-Up: Some lease agreements may not include an Indiana Clause for Grossing Up the Tenant Proportionate Share at all. In this scenario, the tenant's share remains fixed and based on the actual occupancy level without any adjustments. This approach eliminates the complexity and potential disputes related to grossing up expenses. Overall, the Indiana Clause for Grossing Up the Tenant Proportionate Share serves as a mechanism to allocate operating expenses fairly among tenants in a commercial property. It is crucial for both landlords and tenants to carefully review and negotiate the specific terms of this clause to ensure transparency, accuracy, and fairness in expense allocation.
