This office lease clause should be used in an expense stop, stipulated base or office net lease. 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 for each lease year to determine what the building operating costs. Such an adjustment shall be made by the landlord increasing the variable components of such variable costs included in the building operating costs which vary based on the level of occupancy of the building.
The Massachusetts Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease is an important provision that determines how operating expenses are allocated among tenants. It ensures that tenants are responsible for their fair share of expenses while also accounting for potential increases in expenses over time. One type of Massachusetts Gross Up Clause is the Single Tenant Gross Up Clause. This clause states that the tenant will be responsible for a percentage share of the total operating expenses, which will be adjusted annually based on the gross floor area occupied by the tenant. This ensures that tenants pay their fair share regardless of any changes in the overall building occupancy. Another type of Massachusetts Gross Up Clause is the Multiple Tenant Gross Up Clause. This clause is applicable in buildings with multiple tenants and is calculated based on the total rentable square footage of the building. Each tenant is responsible for a pro rata share of expenses based on their leased space within the building. The Massachusetts Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease also includes provisions for situations where certain expenses exceed a predetermined "expense stop." This expense stop sets a cap on the operating expenses that the tenant is responsible for paying. If the expenses exceed the expense stop, the landlord is then responsible for paying the excess. It is important for both landlords and tenants to carefully review and understand the Massachusetts Gross Up Clause in their lease agreements. This clause helps ensure fairness and transparency in the allocation of operating expenses, while also protecting both parties from unexpected increases in expenses. In summary, the Massachusetts Gross Up Clause is a vital component in an Expense Stop Stipulated Base or Office Net Lease. It helps determine how operating expenses are allocated among tenants and adjusts for changes in occupancy or rentable square footage. The clause also includes provisions for expense stops to cap the tenant's responsibility for excessive expenses. Careful consideration and understanding of these provisions will ensure a fair and transparent lease agreement for all parties involved.
