This office lease form is a supplement regarding the building operating expenses which are escalated to the tenant. This form lists items to be excluded from the calculation of building operating costs.
Missouri Building Operating Cost Addendum
Category:
State:
Multi-State
Control #:
US-OL19034BB
Format:
Word;
PDF
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FAQ
Frequently referred to as OPEX, operating expenses are all of the costs that go into running a building. These include utilities, repairs and maintenance, exterior work, insurance, management, and property tax.
Building Operating Costs means and includes all costs, expenses, taxes (other than ad valorem taxes) and disbursements which Landlord pays in connection with the management, operation, maintenance, and repair of the Building and of all building systems, components and appurtenances, including the Common Area.
Simply put, building operating costs are the expenses related to the operation and management of the building. The landlord passes on these costs to the tenant based on their proportionate share of occupied space.
In real estate, the operating expense ratio (OER) is a measurement of the cost to operate a piece of property, compared to the income brought in by the property. The operating expense ratio (OER) is calculated by dividing all operating expenses less depreciation by operating income.
