Controllable Operating Expense Cap Sample Clauses
A Controllable Operating Expense Cap is a lease provision that limits the amount by which certain operating expenses, which the landlord can influence or control, may increase each year. Typically, this cap applies to costs such as maintenance, management fees, and repairs, but excludes uncontrollable expenses like taxes or insurance. By setting a maximum allowable increase, the clause protects tenants from unexpected or excessive rises in operating costs, ensuring greater predictability and financial stability in their lease obligations.
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Controllable Operating Expense Cap. Notwithstanding anything to the contrary in this Section 3, Tenant shall not be obligated to pay to Landlord its Pro Rata Share of increases in Operating Expenses for the property to the extent that such increases exceed six percent (6%) of the previous calendar year's Operating Expenses for the property provided, however, that there shall be no limitation on the payment by Tenant of increases in such expenses that cannot be controlled by Landlord (e.g., utility costs, insurance costs, real property tax increases and any other costs that are beyond Landlord's reasonable control). The foregoing limitations shall be applied separately during each year of the Lease Term. If such expenses have increased by more than six percent (6%) in a previous calendar year and by less than six percent (6%) in a subsequent calendar year, Landlord shall have the right to pass through to Tenant the increase Landlord was unable to pass through in the previous calendar year in the subsequent calendar year provided that Landlord does not exceed in any year a maximum increase of six percent (6%). For example, assume that such expenses, other than utilities, insurance, taxes and any other costs beyond the reasonable control of Landlord (the "Controllable Expenses") for the calendar year 2006 increased by ten percent (10%). Assume further that said Controllable Expenses in the calendar year 2007 increased by one percent (1%). In this event, Tenant's Share of Controllable Expenses increases could be increased by six percent (6%) in 2006 and by five percent (5%) in 2007.”
Controllable Operating Expense Cap. Notwithstanding anything to the contrary set forth in this Section 8, the aggregate “Controllable Operating Expenses” (as hereinafter defined) included in the Operating Expenses in any calendar year after the 2022 calendar year shall not exceed the “CAM Cap” (as hereinafter defined), but with no limit on the amount of Controllable Operating Expenses which may be included in the Operating Expenses incurred during the 2022 calendar year. For purposes of this Lease, (a) “Controllable Operating Expenses” shall mean all Operating Expenses (as adjusted in accordance with Section 8.3) except: (i) Real Property Taxes and all other taxes and assessments, (ii) costs of the premiums for the insurance policies maintained by Landlord under Section 8.2(3), (iii) utility costs, (iv) trash removal costs, (v) Landlord’s management fee, and (vi) other expenses which are not within Landlord’s reasonable control, and (b) “CAM Cap” shall mean the aggregate Controllable Operating Expenses included in the Operating Expenses for the 2022 calendar year, increased by five percent (5%) per year on a cumulative, compounded basis.
Controllable Operating Expense Cap. Effective as of the Substitution Space Commencement Date, Paragraph 1(h) of the Lease is modified and amended to provide that the Actual Operating Expenses which are Controllable (defined below and hereinafter called “Controllable Expenses”) shall not increase by more than 6% over Controllable Expenses in the previous calendar year, on a cumulative, compounded basis. However, any increases in Controllable Expenses not recovered by Landlord due to the foregoing limitation shall be carried forward into all succeeding calendar years during the Lease Term (subject to the foregoing limitation) until fully recouped by Landlord. For example, if Controllable Expenses were $100.00 in 2004, then the total Controllable Expenses that could be included in Actual Operating Expenses in 2005 would be $106.00, for 2006 the amount would be $112.36, for 2007 the amount would be $119.10, and so on. In the preceding example, if Controllable Expenses in both 2006 and 2007 were $115.50, then Landlord could include only $112.36 in Operating Expenses in 2006, but $118.64 (the Controllable Expenses plus the carry-forward from 2006) in 2007. The term “Controllable Expenses” means all Actual Operating Expenses excluding expenses relating to the cost of utilities, security expenses, insurance, real estate taxes and assessments, and other expenses that are deemed by industry standards to be uncontrollable.
Controllable Operating Expense Cap. Effective as of June 1, 2011, Paragraph 6(a) of the Lease is modified and amended to provide that the Controllable Expenses (hereinafter defined) shall not increase by more than 6% over Controllable Expenses in the previous calendar year, on a non-cumulative, compounded basis. The term “Controllable Expenses” means all Actual Operating Expenses excluding expenses relating to the cost of utilities, insurance, and real estate taxes.
Controllable Operating Expense Cap. Notwithstanding anything to the contrary contained in this Article 6, for purposes of calculating Tenant's Proportionate Share of Operating Expenses, expressly excluding Uncontrollable Costs (as hereinafter defined), increases in Operating Expenses in any Adjustment Year compared to the immediately preceding Adjustment Year during the Term shall be subject to a five and one-half percent (5.5%) compounding cap (the "Expense Cap"), an example of which is shown on Exhibit L. The foregoing provision of this Section notwithstanding, (i) union wages for parties providing housekeeping, engineering and security services to the Building, (ii) the costs of all casualty, liability and other insurance applicable to the Property and Landlord's personal property used in connection with the Property, and (iii) utility expenses for the Common Areas (collectively the "Uncontrollable Costs") shall not be subject to any limitation or cap, and accordingly, the total dollar increase in Operating Expenses, and Tenant's Proportionate Share of Operating Expenses payable pursuant to this Section, for any and each Adjustment Year during the Term shall be calculated without any limitation or cap on Uncontrollable Costs.