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 Minnesota Clause for Grossing Up the Tenant Proportionate Share is a provision commonly included in commercial real estate leases in the state of Minnesota. This clause outlines the method by which the tenant's proportionate share of operating expenses is calculated and adjusted to account for any increases in real estate taxes that occur during the lease term. In Minnesota, there are different types of clauses for grossing up the tenant's proportionate share, depending on the specific terms negotiated between the landlord and the tenant: 1. Fixed Percentage Gross-Up Clause: This type of clause establishes a fixed percentage by which the tenant's proportionate share is grossed up or increased. For example, if the fixed percentage is 110%, and the tenant's proportionate share of operating expenses is $10,000, the grossed-up amount would be $11,000. 2. Annual Adjustment Gross-Up Clause: With this clause, the tenant's proportionate share is adjusted annually based on any increase in real estate taxes. The adjustment is typically calculated by comparing the current year's real estate tax bill to the base year tax bill and applying the percentage increase to the tenant's proportionate share. 3. Cumulative Gross-Up Clause: In a cumulative gross-up clause, the adjustments to the tenant's proportionate share are accumulated over multiple years. This means that if real estate taxes increase in consecutive years, the tenant's grossed-up proportionate share would reflect the cumulative increase over that period. 4. Non-Cumulative Gross-Up Clause: In contrast to the cumulative gross-up clause, a non-cumulative gross-up clause only considers the increase in real estate taxes for the current year. The tenant's proportionate share is adjusted only based on the most recent tax increase, without taking into account prior years' increases. These different types of Minnesota clauses for grossing up the tenant's proportionate share offer flexibility for landlords and tenants to tailor the provisions based on their specific needs and preferences. It is essential for both parties to carefully review and negotiate the terms of the clause to ensure their interests are adequately protected during the lease term.
