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.
New Hampshire Building Operating Cost Addendum
Category:
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Multi-State
Control #:
US-OL19034BB
Format:
Word;
PDF
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How to fill out Building Operating Cost Addendum?
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FAQ
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.
This cost is the amount required for the repair and maintenance of the construction equipment subjected to wear and tear due to the daily operations it performs. Repair and Maintenance cost covers a substantial percentage in the overall operating cost. This cost includes: Cost for replacement of equipment part.
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.
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.
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.