This office lease form illustrates the different time lines for different components of rent, additional rents and other charges, thus creating independent commencement and running dates for measurement, and payment. This form also deals with resulting delays in the performance of either party and the impact on all of the defined measurement periods of any delays. Without reference to other facts and documents, the reader will see the benefit of precise complex definitions and also the danger that can result from the casual review of a document that employs the pyramiding of one definition upon another.
Massachusetts Allocation of Certain Time Periods for Construction Between the Landlord and Tenant Drafted Using the Pyramiding Technique
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Common Area Maintenance Calculations Step 1: Tenant's Square Footage / Gross Leasable Footage = Percentage of CAMs. Step 2: Percentage of CAMs x Property's Estimated Annual CAMs = Tenant's Annual CAMs. Annual CAM Expenses / Property's Square Footage = CAM Fee by Cost per Square Foot.
CAM refers to ?Common Area Maintenance? expenses. This is different from ?Operating Expenses? (or ?OpEx?). Operating expenses are the cost of running the entire commercial building or facility. CAM refers to the cost for the parts of the property shared by tenants and their guests or customers.
Some possible negotiation strategies include asking for a cap or ceiling on the annual CAM charges or their escalation rate, a base year or stop clause, an audit right, and an exclusion or reduction of certain CAM expenses.
Evaluate your business needs. Do a little homework before negotiating a lease. ... Always involve a lawyer. ... Understand your costs. ... Understand your lease options. ... Check market rents. ... Research the property. ... Seek tenant inducements. ... Review termination conditions.
Some possible negotiation strategies include asking for a cap or ceiling on the annual CAM charges or their escalation rate, a base year or stop clause, an audit right, and an exclusion or reduction of certain CAM expenses.