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.
The Oklahoma Building Operating Cost Addendum is an important document used in real estate and property management to outline the expenses associated with operating a commercial building in the state of Oklahoma. It provides a detailed breakdown of various costs that tenants may be responsible for, beyond the base rent. The addendum typically includes a comprehensive list of expenses related to the building's operation, maintenance, and management. This can encompass items such as property taxes, insurance premiums, utilities (such as electricity, water, and gas), janitorial services, security services, landscaping, repairs, and maintenance. Additionally, the addendum may specify how these costs will be allocated among the building's tenants. Commonly, it outlines the formula or methodology used to divide the expenses, which can be based on the square footage of each tenant's leased space or the ratio of total leased space to the tenant's area. Moreover, the addendum may include provisions regarding payment of these costs, such as the frequency (monthly, quarterly, or annually), deadlines, and accepted methods of payment. It is crucial for tenants to understand their obligations and budget accordingly. In Oklahoma, there might be different types or variations of the Building Operating Cost Addendum, depending on the specific agreement between the landlord and tenant or the nature of the property. For instance: 1. Full-Service Operating Cost Addendum: This type of addendum states that the tenant will pay a flat fee that covers all operating costs, including utilities, maintenance, and other expenses. It simplifies the billing process for tenants, as they only have to make one payment, and the landlord is responsible for managing and distributing the expenses. 2. Triple Net (NNN) Operating Cost Addendum: In this scenario, the tenant is usually responsible for their proportionate share of operating costs, including property taxes, insurance, and common area maintenance. They would reimburse the landlord for these expenses separately from base rent. The addendum would outline the specific costs and the methodology for calculating the tenant's share. 3. Modified Gross Lease Operating Cost Addendum: This type of addendum combines elements of both full-service and triple net leases. The base rent includes some operating costs, such as utilities or janitorial services, while the tenant shares in additional expenses like insurance or property taxes. The addendum defines the included costs and outlines the tenant's responsibilities. These various types or forms of the Oklahoma Building Operating Cost Addendum provide flexibility in addressing different lease structures and aligning the obligations and responsibilities of landlords and tenants when it comes to operating expenses.
