This office lease clause should be used in a base year lease. This form states that when the building is not at least 95% occupied during all or a portion of any lease year the landlord shall make an appropriate adjustment in accordance with industry standards of the building operating costs. This amount shall be deemed to be the amount of building operating costs for the year.
The Massachusetts Gross Up Clause is an important provision that should be included in a base year lease in the state. This clause ensures that the tenant's rent is adjusted to account for any increases in the operating expenses of the property during the lease term. By including a Massachusetts Gross Up Clause, both the landlord and the tenant can have a fair and balanced leasing arrangement. There are different types of Massachusetts Gross Up Clauses that can be used in a base year lease, each addressing specific scenarios: 1. Operating Expense Gross Up: This type of Massachusetts Gross Up Clause allows the landlord to increase the tenant's base rent if there is a significant increase in the property's operating expenses. This clause protects the landlord from incurring financial losses due to rising costs. 2. Utility Expense Gross Up: Massachusetts Gross Up Clauses can also address utility expenses. With this provision, the tenant's base rent can be adjusted to reflect any increases in utility costs such as electricity, gas, or water. This ensures that the tenant is not burdened with unpredictable utility cost fluctuations. 3. Tax Expense Gross Up: Another crucial aspect of a Massachusetts Gross Up Clause is addressing tax expenses. This provision allows the landlord to pass on any increases in property taxes to the tenant by adjusting the base rent accordingly. By including this clause, both parties share the responsibility of shouldering the property's tax burdens. 4. Insurance Expense Gross Up: Insurance costs can also be brought under the purview of a Massachusetts Gross Up Clause. This provision allows the landlord to adjust the base rent if the property's insurance premiums increase significantly over the lease term. This clause ensures that the tenant contributes their fair share to the property's insurance costs. In summary, including a Massachusetts Gross Up Clause in a base year lease is crucial to create a fair and balanced leasing arrangement. The various types of Massachusetts Gross Up Clauses, such as operating expense, utility expense, tax expense, and insurance expense gross ups, address different cost aspects that may fluctuate during the lease term. By incorporating these clauses, both the tenant and the landlord can mitigate financial risks and maintain a mutually beneficial lease agreement.
