This office lease clause is used to respond to various changes that might occur within the tenant's office building or shopping center.
Wisconsin Measurement Representations and Proportionate Share Adjustment of Tenants Proportionate Tax Share
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FAQ
An expense stop is a contractual provision that protects the property owner from rising expenses over the lease term. In such a case, the property owner typically agrees to pay all of the operating expenses in the first year of the lease, which is known as the ?base year amount? and sets the expense stop.
Tenant's Percentage Share means the percentage figure obtained by dividing the net rented area of the Premises specified hereinabove by the total net useable area of the rental space in the Building, and by multiplying such quotient by One Hundred (100).
In general, the tenant's proportionate share is determined by taking the building's rentable square footage and dividing it by the tenant's rentable square footage. Local industry customs usually provide the landlord with the guiding principles for: Measuring the building.
Share tenancy is a land lease under which rent is a contracted percentage of the output yield from the tenant per period of time. As a rule, the landowner provides land, and the tenant provides labor; other inputs may be provided by either party.
The pro-rata share is the percentage of expenses shared by the tenant for the shopping center or office building. In most leases, the pro-rata share is calculated as a fraction of the tenant's demised square footage divided by the total square footage of the shopping center or the building.