This office lease clause should be used in a base year lease. This form states that 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 in accordance with industry standards of the building operating costs. This amount shall be deemed to be the amount of building operating costs for the year.
The Pennsylvania Gross Up Clause is a crucial component of a Base Year Lease that ensures fair distribution of operating expenses among tenants in a commercial property. This clause avoids any potential discrepancies that might arise when calculating a tenant's share of such expenses, offering transparency and accuracy in cost allocation. One type of Pennsylvania Gross Up Clause that should be included in a Base Year Lease is the "Actual Expense Gross Up." Under this clause, the landlord adjusts the gross-up base year by adding an amount equal to the percentage increase in expenses incurred during the base year. This ensures that the tenant is billed for their proportionate share of expenses based on the actual costs incurred, taking into account fluctuations in operating expenses over time. Another type of Pennsylvania Gross Up Clause is the "Budgeted Expense Gross Up," which may be used in cases where actual expenses are not readily available or difficult to determine. In this scenario, the landlord relies on budgeted expenses instead of actual expenses for the base year. The tenant's proportionate share is calculated based on the budgeted expenses, allowing for a fair distribution of costs within the tenant community. To implement a Pennsylvania Gross Up Clause effectively, it is important to consider specific keywords. These may include "gross up clause," "Pennsylvania lease," "base year lease," "operating expenses," "transparent cost allocation," "actual expense gross up," and "budgeted expense gross up." Including these keywords in the lease agreement and related documents will ensure clarity and compliance with Pennsylvania law. In conclusion, the Pennsylvania Gross Up Clause is a critical provision in a Base Year Lease that aims to fairly allocate operating expenses among tenants. Whether implementing an actual expense or budgeted expense gross up, it is vital to include specific language and keywords to ensure that the clause effectively addresses cost allocation, transparency, and accuracy.
