This office lease clause states the conditions under which the landlord can and can not furnish any particular item(s) of work or service which would constitute an expense to portions of the Building during the comparative year.
The New Mexico Clause for Grossing Up the Tenant Proportionate Share is a provision frequently included in commercial lease agreements. This clause determines how the tenant's proportionate share of operating expenses is calculated and adjusted for increases in taxes, insurance, and other costs associated with the property. In New Mexico, there are various types of clauses for grossing up the tenant proportionate share. The most common ones include: 1. Simple Gross-Up Clause: This type of clause ensures that the tenant's proportionate share is adjusted to account for increases in operating expenses. It typically specifies the base year from which the gross-up calculation begins and outlines the methodology used to calculate the tenant's share based on changes in expenses. 2. CPI-Based Gross-Up Clause: This clause utilizes the Consumer Price Index (CPI) to adjust the tenant's proportionate share. The CPI measures changes in the cost of living and is often used as an indicator of inflation. The clause outlines how the tenant's share is adjusted by applying the CPI percentage increase to the base year expenses. 3. Direct Expense Reimbursement Clause: This clause allows the landlord to directly bill the tenant for any increase in operating expenses without adjusting the proportionate share. It is typically used when the landlord wants to pass on specific expenses, such as increased property taxes or insurance premiums, directly to the tenant. 4. Percent of Total Operating Expenses Gross-Up Clause: Under this clause, the tenant's share is adjusted based on a percentage of the total operating expenses incurred by the property. The exact percentage used may vary, depending on the negotiation between the landlord and tenant. These different types of New Mexico Clause for Grossing Up the Tenant Proportionate Share provide flexibility for both landlords and tenants to determine the most suitable method for adjusting the tenant's share of operating expenses. It is important for both parties to carefully review and negotiate the specific terms of the clause to ensure fair and transparent allocation of costs throughout the lease term.
