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 Mississippi Gross Up Clause is an important aspect to consider when drafting an Expense Stop Stipulated Base or Office Net Lease in Mississippi. This clause ensures that tenants are not burdened with additional expenses resulting from increases in operating costs for the property. The purpose of the Gross Up Clause is to protect tenants from unexpected and uncontrollable increases in expenses such as property taxes, insurance premiums, and common area maintenance costs. By incorporating this clause into the lease agreement, landlords agree to bear the responsibility for any increase in expenses beyond a certain level, commonly known as the "base year." Here are some types of Mississippi Gross Up Clauses that can be used in an Expense Stop Stipulated Base or Office Net Lease: 1. Exclusive Gross Up Clause: Under this type of clause, the landlord is required to gross up expenses only for tenants occupying office spaces within a particular building or complex. This ensures that each tenant bears their fair share of increased expenses based on their leased area, rather than the entire property. 2. Proportional Gross Up Clause: This clause allows for expenses to be grossed up proportionally based on the tenant's leased area in relation to the total leasable area of the property. For example, if a tenant occupies 10% of the total leased area, they will only be responsible for 10% of any increased expenses beyond the base year. 3. Full Building Gross Up Clause: In certain cases, a lease may include a clause that requires the tenant to bear their full share of grossed-up expenses for the entire building or property. This means that the tenant will be responsible for their proportionate share of the increased expenses, irrespective of their leased area. 4. Consumer Price Index (CPI) Gross Up Clause: This type of clause allows expenses to be increased based on changes in the Consumer Price Index. It provides a standardized method for determining the increase in expenses and ensures that tenants are not subject to arbitrary or excessive increases. It is important to carefully consider which type of Mississippi Gross Up Clause is most suitable for a specific lease agreement, taking into account the nature of the property, the tenant's occupancy, and the lease structure. Seeking legal advice or guidance from a professional familiar with Mississippi real estate laws is recommended to ensure that the Gross Up Clause is tailored to the specific needs and requirements of the lease agreement.
