Cap on Controllable Operating Expenses Sample Clauses
A Cap on Controllable Operating Expenses clause sets a maximum limit on the amount a landlord can charge tenants for certain operating expenses that are within the landlord’s control. Typically, this cap applies to costs such as maintenance, management fees, and repairs, but excludes uncontrollable expenses like taxes or insurance premiums. By establishing this limit, the clause protects tenants from unexpected or excessive increases in operating costs, ensuring greater predictability and financial stability in their lease obligations.
POPULAR SAMPLE Copied 615 times
Cap on Controllable Operating Expenses. For purposes of calculating Tenant's Additional Rental pursuant to Paragraph 19 of the Lease, Landlord and Tenant hereby agree that, commencing with the first full calendar year of the Lease Term, Operating Expenses (except for Uncontrollable Costs, as hereinafter defined) shall be deemed not to increase by more than four and one-half percent (4 1/2%) herein referred to as the "Operating Expense Cap" from one calendar year to the next calendar year, regardless of any actual increases in Operating Expenses; provided, however, in the event that in any calendar year any such increase in Operating Expenses is in fact greater than the Operating Expense Cap (any such increase in excess of the Operating Expense Cap being hereinafter collectively referred to as the "Carryover Percentage"), Landlord shall have the right to add all of the Carryover Percentage (or such portion thereof as will not produce a total increase in Operating Expenses in excess of the Operating Expense Cap) to the increases in Operating Expenses occurring over any of the following years of the Lease Term in which such increases in Operating Expenses are less than the Operating Expense Cap, on a cumulative basis until all such Carryover Percentages have been used to increase Operating Expenses for purposes of calculating Tenant's Additional Rental payable pursuant to Paragraph 19 of the Lease. For example, if the actual increase in Operating Expenses during the second calendar year of the Lease Term is ten percent (10%) and if, for purposes of this example, the Operating Expense Cap is eight percent (8%) (thus creating a Carryover Percentage of two percent (2%), which may be carried forward to future years by Landlord), and if in the third calendar year of the Lease Term the actual increase in the Operating Expenses is six percent (6%), then during the third calendar year of the Lease Term Operating Expenses shall be deemed to increase by eight percent (8%), such eight percent (8%) increase arising from adding the six percent (6%) increase in Operating Expenses which occurred in the third calendar year to the two percent (2%) Carryover Percentage from the second calendar year. The foregoing provisions of this Section notwithstanding, Taxes, all utility costs and expenses, including, without limitation, those for electricity and other fuels and forms of power or energy, water charges, sewer and waste disposal, and the cost of all casualty, liability and other insurance applicable to the Project...
Cap on Controllable Operating Expenses. Notwithstanding anything to the contrary set forth in this Lease, Landlord agrees that Tenant’s obligation to pay increases in controllable Operating Expenses in any Operating Period shall not exceed five percent (5%) over the controllable Operating Expenses payable in the preceding Operating Period, determined on a cumulative basis throughout the Term. For the purposes of this Lease, “controllable” Operating Expenses include all Operating Expenses other than the cost of all utility services provided to the Project, insurance premiums and any taxes included in Operating Expenses. For purposes of clarity, there is no cap on the amount of Taxes payable by Tenant.
Cap on Controllable Operating Expenses. Notwithstanding anything to the contrary contained in this Article 4, the aggregate Controllable Expenses (as hereinafter defined) included in Operating Expenses in any Expense Year after the 2018 Base Year shall not increase by more than five percent (5%) on an annual and compounded basis, over the actual aggregate Controllable Expenses included in Operating Expenses for any preceding Expense Year, but with no such limit on the amount of Controllable Expenses which may be included in the Operating Expenses incurred during the 2018 Base Year. For purposes of this Section 4.3.4, “Controllable Expenses” shall mean all Operating Expenses except: (i) costs of utilities; (ii) any and all assessments, including assessment districts and government-mandated charges with respect to the Building or Real Property, or any part thereof; (iii) insurance carried by Landlord with respect to the Real Property and/or the operation thereof; and (iv)costs of capital expenditures, including, without limitation, costs of capital improvements, capital alterations, and capital repairs. The provisions of this Section 4.3.4 do not apply to the Tax Expenses.
Cap on Controllable Operating Expenses. During the Initial Term -------------------------------------- (as defined in Paragraph 47(a) hereof) only, for each calendar year subsequent to the 1996 calendar year, Controllable Operating Expenses (as hereinafter defined) shall increase no more than ten percent (10%) on a cumulative, compounded basis, over the previous calendar year (except that when computing the cap for the 1997 calendar year, the amount for the 1996 calendar year shall be re-computed as if Tenant had leased the Premises for the entire 1996 calendar year). As used herein, "Controllable Operating Expenses" shall include only (i) employees' salaries and benefits (other than those required by law or union contract) and (ii) payments to third party contractors (but only to the extent comparable services can be obtained from reputable vendors or contractors for lower total payments, and only to the extent of the difference between the actual payment and such lower total payments), and Controllable Operating Expenses shall expressly not include, without limitation, utility payments, insurance premiums, Taxes, and all other expenses not within the control of Landlord. By way of example only, assume that the Controllable Operating Expenses (without regard to the application of the cap) for the entire 1996 calendar year is $100, then (1) if actual Controllable Operating Expenses for the 1997 calendar year equal $105, Tenant would be charged $105 in Controllable Operating Expenses, and (2) if actual Controllable Operating Expenses for the 1998 calendar year equal $125, Tenant would be charged $121 in Controllable Operating Expenses, and (3) if actual Controllable Operating Expenses for the 1999 calendar year equal $132, Tenant would be charged $132 in Controllable Operating Expenses, and (4) if actual Controllable Operating Expenses for the 2000 calendar year equal $150, Tenant would be charged $146.41 in Controllable Operating Expenses. SECURITY DEPOSIT ----------------
Cap on Controllable Operating Expenses. Notwithstanding anything to the contrary contained in this Section 5, "Controllable Operating Expenses" (as hereinafter defined) for any calendar year after the First Lease Year (as defined below) shall not increase by more than five percent (5%) over the maximum permitted Controllable Expenses for any immediately preceding calendar year (regardless of the actual Controllable Expenses incurred for such preceding calendar year), provided, however, if the actual Controllable Expenses for any calendar year are greater than the maximum amount permitted to be charged to Tenant hereunder, the difference shall be added to the Controllable Expenses for succeeding calendar years until exhausted. For purposes of this section 5.2, (i) the term "
Cap on Controllable Operating Expenses. Notwithstanding the foregoing provisions of this Section 4, or any other provision expressed or implied herein to the contrary, the parties agree that beginning after the first complete calendar year of the Term (i.e., beginning January 1, 2012), there shall be a five percent (5%) cap each calendar year on any increase in Tenant’s Share of Controllable Operating Expenses (as such term is defined below) over Tenant’s Share of Controllable Operating Expenses in the immediately preceding calendar year. This means that Tenant’s Share of Controllable Operating Expenses for calendar year 2012 shall, in no event, exceed Tenant’s Share of Controllable Operating Expenses in 2011, plus five percent (5%), and that Tenant’s Share of Controllable Operating Expenses for each successive calendar year during the Term shall, in no event, exceed Tenant’s Share of Controllable Operating Expenses in the immediately preceding calendar year, plus five percent (5%). The foregoing cap shall apply on the total of Tenant’s Share of Controllable Operating Expenses and not on a line item basis. Any increases in Operating Expenses not recovered by Landlord due to the foregoing limitation shall be carried forward into all succeeding calendar years during the Term and recouped by Landlord, subject to the foregoing 5% cap. The term “Controllable Operating Expenses” means all Operating Expenses, except expenses relating to the costs of utilities, insurance, real estate taxes, snow removal, capital expenditures (to the extent included within Operating Expenses as provided herein), and Landlord’s Management Fee (the latter of which is fixed at 3.5% of Monthly Base Rent).
Cap on Controllable Operating Expenses. Landlord agrees that, during the initial five- year Term of this Lease, in calculating Tenant's Share of Excess Expenses pursuant to Article 3, that portion of Operating Expenses which are controllable by Landlord (specifically excluding, without limitation, insurance premiums, taxes [including Property Taxes and costs of utilities) will not increase more than six percent (6%) per year, compounded annually, over the amount of such controllable Operating Expenses for the calendar year in which the Rent Commencement Date occurs.
Cap on Controllable Operating Expenses. Until such time, if ever, as Tenant has replaced and placed into service the Air Terminal Units with air terminal units meeting the Base Building Specifications and otherwise in accordance with the terms of the Lease, as amended hereby, and placed into service, at Tenant’s sole cost and expense, Section 4.4.3 of the Original Lease is hereby amended such that “Controllable Operating Expenses” shall not include any Operating Expenses relating to the operation and maintenance of the BB HVAC System or arising from the installation of the Air Terminal Units,
Cap on Controllable Operating Expenses. For purposes of determining Tenant’s Proportionate Share of increases in Operating Expenses, the amount by which Controllable Operating Expenses (defined below) (in the aggregate and not on a line-by-line basis) increase during each Calendar Year commencing with Calendar Year 2009 shall not exceed the product of the Controllable Operating Expenses for the immediately preceding Calendar Year multiplied by *** (the “Cap”). For purposes of this Section 7.8 only, “Controllable Operating Expenses” shall be all Operating Expenses less all taxes, utility charges, insurance costs, costs of snow removal, costs incurred to comply with laws and any other charges incurred by reason of the causes or factors described in Section 27.16 (it being the intent that only controllable expenses be capped as set forth herein). Tenant’s Proportionate Share of increases in Operating Expenses shall be calculated after the determination of increases in Controllable Operating Expenses has been made pursuant to this Section 7.8.
Cap on Controllable Operating Expenses. Landlord agrees that Tenant’s share of the controllable Operating Expenses for the Building shall not escalate more than six percent (6%) per annum. For the purposes of this Lease, a controllable Operating Expense shall be defined as any expense within the reasonable control of Landlord (hereinafter known as “Controllables”), such as expenses for which the Landlord may obtain a competitive bid for materials or services, the salaries of employees, management fees, and service contracts, but specifically excluding, taxes, insurance, snow removal, utilities, or any other services for which Landlord does not control the rates or costs.