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.
North Dakota Gross Up Clause in an Expense Stop Stipulated Base or Office Net Lease In a North Dakota gross up clause, the objective is to fairly distribute the increased expenses among the tenants in a multi-tenant building, particularly in cases where there is an expense stop or a stipulated base in place. This clause ensures that even if the expenses exceed the stop or the base, the tenants share the additional burden equitably. One commonly used type of North Dakota gross up clause is the Expense Gross Up Clause. This clause allows the landlord to adjust the net operating expenses by grossing up the expense amount to what it would have been if the building were fully occupied. The gross up factor takes into consideration any vacant space or operating inefficiencies, ensuring that the expenses are allocated fairly among all the tenants. Another type of North Dakota gross up clause is the Tenant Gross up Clause. This clause allows the tenant to request a gross up of their share of operating expenses, primarily when they are occupying a larger space or their lease was executed at a later date. The tenant can request the adjustment to ensure that their expenses are calculated based on a similar occupancy level as other tenants in the building. The Variable Expense Gross Up Clause is another variant of the North Dakota gross up clause. This clause allows the landlord to adjust the variable expenses, such as utilities, maintenance, or security costs, based on changes in occupancy levels. The clause ensures that the tenants bear their share of these variable expenses accurately, considering any fluctuations in occupancy during the lease term. It is essential for landlords and tenants to carefully consider the North Dakota gross up clause that meets their specific needs when drafting an expense stop stipulated base or office net lease. By incorporating a well-defined gross up clause, both parties can avoid disputes and ensure a fair distribution of expenses, regardless of the actual costs incurred. In summary, the various types of North Dakota gross up clauses that should be used in an expense stop stipulated base or office net lease include the Expense Gross Up Clause, Tenant Gross up Clause, and Variable Expense Gross Up Clause. Each clause serves the purpose of fairly distributing expenses among tenants, accounting for factors such as vacancies, occupancy levels, and variable expenses.
