New Mexico Building Operating Cost Addendum

State:
Multi-State
Control #:
US-OL19034BB
Format:
Word; 
PDF
Instant download

Description

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.

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FAQ

Operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development. By contrast, a non-operating expense is an expense incurred by a business that is unrelated to the business's core operations.

In a commercial real estate context, expenses that are necessary for the operation, management, and maintenance of a commercial property. A tenant typically pays its proportionate share of operating expenses as additional rent.

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.

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.

Operating expenses include all of the costs associated with operating the property. These include property management fees, insurance, utilities, property taxes, repairs, and maintenance.

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New Mexico Building Operating Cost Addendum