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 Massachusetts Clause for Grossing Up the Tenant Proportionate Share is a legal provision that addresses the expenses related to common areas in commercial property leases. It determines the method for calculating and adjusting the tenant's share of common area expenses, such as maintenance, utilities, and taxes. In Massachusetts, there are different types of clauses that landlords and tenants can include in their lease agreements to address the grossing up of the tenant's proportionate share. These clauses ensure that the tenant pays their fair and accurate share of the expenses incurred in maintaining and operating the common areas. 1. Basic Gross-Up Clause: This type of clause allows the landlord to adjust the tenant's proportionate share of common area expenses based on a predetermined ratio. For example, if the tenant's rentable square footage constitutes 10% of the total rentable square footage in the building, they would pay 10% of the common area expenses. 2. Expense Stop Gross-Up Clause: This clause establishes a base or expense stop amount beyond which the tenant will be responsible for their share of the increased expenses. If the actual expenses exceed the expense stop amount, the tenant's proportionate share will be grossed up to cover the additional costs. 3. Operating Expense Gross-Up Clause: This clause takes into account variations in the operating expenses of the common areas. It allows the tenant's proportionate share to be adjusted annually based on the actual operating expenses incurred during the previous year. 4. Tax Gross-Up Clause: This type of clause addresses the grossing up of the tenant's proportionate share of property taxes. It allows the tenant to pay their share based on the assessed value of the property while accounting for any tax abatement, reassessments, or changes in tax rates. 5. CAM (Common Area Maintenance) Gross-Up Clause: This clause specifically focuses on the calculation and adjustment of the tenant's proportionate share of common area maintenance expenses. It ensures that the tenant covers their fair share of costs associated with cleaning, repairs, landscaping, and other maintenance activities. 6. Triple Net Lease Gross-Up Clause: In a triple net lease, the tenant is responsible for paying a proportionate share of operating expenses, taxes, and insurance on top of their base rent. A gross-up clause in this context ensures that the tenant pays their full share of these expenses, taking into account any fluctuations or increases in costs. When including a Massachusetts Clause for Grossing Up the Tenant Proportionate Share, it is essential to consult with a legal professional to ensure compliance with Massachusetts law and to draft the most suitable clause for the specific lease agreement.
