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.
South Dakota Clause for Grossing Up the Tenant Proportionate Share is an important aspect of commercial lease agreements in the state. It specifically addresses how expenses related to the operating costs of a property are allocated among tenants. This clause ensures that tenants are paying their fair share of expenses while also accounting for inflation and other factors that can affect operating costs. The clause includes provisions for "grossing up" the tenant's proportionate share. Grossing up refers to adjusting the proportionate share to account for the possibility that a property may not be fully occupied at all times. This adjustment ensures that the landlord is not unfairly burdened with higher operating costs due to vacant spaces. There are different types of South Dakota Clauses for Grossing Up the Tenant Proportionate Share to consider, such as: 1. Basic Gross-Up Clause: This type of clause typically allows the landlord to adjust the tenant's proportionate share based on an estimated occupancy level. It may take into account a specific percentage of occupancy or other factors as agreed upon in the lease. 2. Automatic Gross-Up Clause: This type of clause includes an automatic adjustment provision that triggers annually or at specified intervals. The adjustment is often tied to changes in property expenses or other relevant factors. 3. Expense Stop Gross-Up Clause: In this type of clause, the landlord sets a cap or expense stop beyond which the tenant is no longer responsible for any additional costs. If the property expenses exceed the expense stop, the landlord would bear the burden of the excess amount. 4. Consumer Price Index (CPI) Gross-Up Clause: This clause ties the adjustment of the tenant's proportionate share to fluctuations in the Consumer Price Index. The CPI is a measure of inflation and is commonly used as a basis for adjusting operating costs. 5. Flexible Gross-Up Clause: This type of clause allows for negotiation between the landlord and tenant regarding the specific formula or method used for grossing up the tenant's proportionate share. It provides flexibility to tailor the clause to the unique circumstances of the property and lease agreement. It is important for both landlords and tenants to carefully consider and negotiate the South Dakota Clause for Grossing Up the Tenant Proportionate Share. Clear and specific language should be used to avoid confusion or disputes in the future. Seeking legal advice or assistance when drafting or reviewing this clause can help ensure that the rights and obligations of both parties are properly addressed.
