This office lease clause should be used in an expense stop, stipulated base or office net lease. 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 for each lease year to determine what the building operating costs. Such an adjustment shall be made by the landlord increasing the variable components of such variable costs included in the building operating costs which vary based on the level of occupancy of the building.
A West Virginia Gross Up Clause is a crucial aspect of an Expense Stop Stipulated Base or Office Net Lease agreement in the state. This clause serves to ensure a fair allocation of expenses between the landlord and the tenant, specifically concerning common area maintenance (CAM) charges, property taxes, insurance premiums, and other related expenses. The purpose of the Gross Up Clause is to account for differences in occupancy levels within a property. When some spaces within a building are vacant or unoccupied, the landlord might incur higher expenses per square footage for the occupied areas. Therefore, the Gross Up Clause seeks to adjust and distribute expenses as if the building were fully occupied, providing an equitable distribution method. There can be different types of Gross Up Clauses used in West Virginia leases, including: 1. Full Gross Up: This clause allows the landlord to calculate and adjust expenses as if the entire building or property were occupied at all times. The vacant or unoccupied spaces are considered occupied for expense allocation purposes. The tenant's share of expenses may increase, but it ensures that the tenant is not burdened with a disproportionately higher expense load due to vacancies. 2. Partial Gross Up: This clause provides the landlord with the option to partially adjust the expenses based on a predetermined occupancy rate. The adjustment is done by estimating the additional expenses that would be incurred if the property were fully occupied. This method ensures a fair allocation while taking into account the actual occupancy level of the building. 3. No Gross Up: In some cases, the lease might not include a Gross Up Clause. In such instances, the expenses are typically allocated based on the actual occupancy level at any given time. The tenant's responsibility for expenses would be directly proportional to the leased area's relative contribution to the overall building. It is important to carefully review and understand the specific West Virginia Gross Up Clause stated in an Expense Stop Stipulated Base or Office Net Lease agreement. Landlords and tenants should consult legal professionals to ensure the clause appropriately addresses the unique circumstances and requirements of the lease.
