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.
A Bexar Texas Gross Up Clause is a provision commonly used in base year leases to determine how expenses such as utilities and taxes are allocated among tenants in a commercial property. This clause ensures that tenants only pay their fair share of these expenses based on their occupancy of the property. There are two main types of Bexar Texas Gross Up Clauses that can be used in a base year lease: 1. Pro Rata Gross Up Clause: This clause calculates the tenant's share of expenses based on the ratio of their leased space to the total leasable area in the property. For example, if a tenant occupies 10% of the total leasable area, they will be responsible for paying 10% of the total expenses. 2. Tenant Square Footage Gross Up Clause: This clause calculates the tenant's share of expenses based on the square footage of their leased space, regardless of the total leasable area in the property. For example, if a tenant occupies 1,000 square feet in a 10,000-square-foot property, they will be responsible for paying 10% of the total expenses. The purpose of these gross up clauses is to ensure that tenants are not unfairly burdened with expenses that are not directly related to their occupancy. By using a base year lease approach, any increases in expenses beyond the base year are shared among all tenants based on their respective gross up calculations. Implementing a Bexar Texas Gross Up Clause in a base year lease provides transparency and fairness in expense allocation, promoting a harmonious landlord-tenant relationship. It is crucial for both parties to thoroughly understand and agree upon the specific provisions of the clause to prevent any misunderstandings or disputes in the future. Overall, a Bexar Texas Gross Up Clause in a base year lease is an essential tool to accurately distribute expenses among tenants and maintain a balanced financial arrangement in a commercial property.
