Controllable Operating Expenses Clause Samples
The "Controllable Operating Expenses" clause defines which operating costs a property manager or landlord can influence or manage, as opposed to those that are fixed or outside their control. Typically, this clause lists expenses such as maintenance, repairs, and certain utilities, while excluding items like property taxes or insurance premiums. By clearly distinguishing controllable from uncontrollable expenses, the clause helps allocate responsibility and risk, ensuring that tenants are not unfairly charged for costs that could have been managed or minimized by the landlord.
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Controllable Operating Expenses. Notwithstanding the foregoing, commencing with calendar year 2018 and each calendar year during the Term thereafter, it is understood and agreed that for purposes of calculating Tenant’s Proportionate Share of the Operating Expenses in any calendar year during the Term, the maximum amount of Controllable Operating Expenses (as hereinafter defined) included in Operating Expenses for any calendar year from and after 2018 during the Term (such maximum amount of Controllable Operating Expenses, the “Cap”) shall be limited to the actual amount of Controllable Operating Expenses paid or incurred by Landlord on account of or in calendar year 2017, which Cap shall be increased on a cumulative, compounding basis at five percent (5%) per annum through the applicable calendar year. Tenant shall remain fully liable in each year for the whole amount of Tenant’s Proportionate Share of the Operating Expenses which are not Controllable Operating Expenses. In the event that the Cap applies to limit Tenant’s Proportionate Share of the Operating Expenses attributable to Controllable Operating Expenses for any calendar year, the excluded amount shall be carried forward to succeeding calendar years and recaptured by Landlord so long as the amount of Controllable Operating Expenses does not exceed the Cap (as increased each year) in any such succeeding year. For purposes of clarity, it is acknowledged and agreed that Tenant’s responsibility for Controllable Operating Expenses in any calendar year shall not exceed (i) the Cap (as the same is adjusted annually), or (ii) the actual amount of Controllable Operating Expenses paid or incurred by Landlord in such calendar year, whichever is less. For purposes herein, the term “Controllable Operating Expenses” shall mean only (i) the cost of repairs, replacements, maintenance and cleaning, including, without limitation, the cost of janitorial and other service agreements, and trash removal with respect to Common Areas; (ii) the cost of all repairs and maintenance associated with the landscaped areas, surface parking areas and truck courts of the Property, the cost of associated roof maintenance in connection with the Property; and (iii) fees, charges and other costs, including, without limitation, consulting fees, attorneys’ fees and accounting fees of all contractors engaged by Landlord in connection with the operation, maintenance or repair of the Property.
Controllable Operating Expenses. Commencing with calendar year 2013 and each calendar year during the Term thereafter, it is understood and agreed that for purposes of calculating Operating Expenses in any calendar year during the Term (for purposes of this Section, the “Remaining Term”), the maximum amount of Controllable Operating Expenses included in Operating Expenses for any calendar year from and after 2012 during the Remaining Term shall be limited to the actual amount of Controllable Operating Expenses paid or incurred by Landlord on account of or in calendar year 2012, increased on a cumulative, compounding basis at five percent (5%) per annum through the applicable calendar year. In the event that the cap applies to limit the Operating Expenses attributable to Controllable Operating Expenses for any calendar year, the excluded amount shall be carried forward to succeeding calendar years and recaptured by Landlord so long as the foregoing limit on the increase in the portion of Operating Expenses attributable to Controllable Operating Expenses is not exceeded in any such succeeding year such that amounts that could not be included in Operating Expenses during such prior years may be re-captured by Landlord.
Controllable Operating Expenses. Landlord hereby agrees that any increases in the Controllable Operating Expenses (as hereinafter defined) shall not exceed five percent (5%) cumulatively from the previous years’ Controllable Operating Expenses as to Tenant’s Pro-Rata Share (it is recognized that that Tenant holds a Partial Premises Termination Right and Lease Termination Right and that extra expenses incurred by Landlord based upon Tenant’s election to lease less than the entire Premises, shall be permitted to be charged as Operating Expenses and not excluded because they have increased Operating Expenses beyond the foregoing limit, if such costs and expenses were not payable by Landlord while Tenant leased the entire Building). “Controllable Operating Expenses” shall mean all Operating Expenses and expenses excluding insurance premiums, Real Estate Taxes, utilities for the Common Areas, costs of security, damages not covered by insurance resulting from acts of god, damages not covered by insurance caused by Tenant, its employees, guests or invitees and additional costs incurred while Tenant no longer leases the entire Premises, owner’s association fees or costs and expenses paid under the applicable covenants, conditions and restrictions, applicable easements, or any document recorded against or for the benefit of the Project, fees for required licenses and permits for the Building, the costs of any unionized labor or government mandated wage or benefit increases associated with services provided to the Building, and similar costs and expenses where the rates are set by third party providers.
Controllable Operating Expenses. Notwithstanding the foregoing provisions of Section 4(c)(ii), in determining Tenant’s Proportionate Share of Operating Expenses for any calendar year, the portion of Operating Expenses for such calendar year which constitute Controllable Operating Expenses (as hereinafter defined) shall not exceed one hundred five percent (105%) of the amount of Controllable Operating Expenses (as hereinafter defined) actually passed through to Tenant for the immediately preceding calendar year (the “Controllable Operating Expenses Cap”). As used herein, “Controllable Operating Expenses” shall mean all Operating Expenses except for the following: (i) utility company charges; (ii) insurance premiums; (iii) the cost to remove snow and ice; (iv) increased labor costs due to requirements for use of labor subject to collective bargaining, (v) costs of compliance with Legal Requirements first applicable to the Property after the Commencement Date; and (vi) the cost of providing security for the Building (if any). The Controllable Operating Expenses Cap is not cumulative (i.e., the unused portion of one particular calendar year’s cap shall not be carried forward to absorb any future Operating Expenses that would otherwise be in excess of the cap for such subsequent calendar years, nor shall any amount of Controllable Operating Expenses that are in excess of the cap be included in any subsequent calendar year calculations of the amount of Controllable Operating Expenses to be passed through to Tenant).
Controllable Operating Expenses. Notwithstanding any provisions in the Lease to the contrary, the Controllable Operating Expenses used in calculating Tenant’s Share of Operating Expenses shall be subject to an eight percent (8%) year-over-year increase cap, on a compounding basis (the “Controllable Cost Cap”), and Landlord shall be responsible for Tenant’s Share of Controllable Operating Expenses in excess of the Controllable Cost Cap each year.
Controllable Operating Expenses. As of the Effective Date of this Fifth Amendment to Lease, Paragraph 4 of the Fourth Amendment to Lease is hereby deleted and replaced with the following: Notwithstanding anything to the contrary contained herein, “Controllable Operating Expenses” (as hereinafter defined) shall not increase by more than three (3%) percent per year, compounded annually, over the amount of the Controllable Operating Expenses for the previous calendar year. Such cap is cumulative, and the unused portion of a year’s cap may be carried forward to absorb any further Operating Expenses that would otherwise be in excess of the cap. “Controllable Operating Expenses” shall be deemed to mean all Operating Expenses except for utilities, insurance, snow and ice removal, management fees, repair and maintenance costs and any other expense reasonably determined to be beyond Landlord’s control.
Controllable Operating Expenses. “Controllable Operating Expenses” means all Operating Expenses, excluding expenses relating to (i) Tax Expenses, (ii) utilities, (iii) insurance, (iv) snow, ice and debris removal, (v) security, (vi) other weather-related costs (including extraordinary landscaping maintenance costs resulting from infestation, storms, drought and other severe weather); (vii) costs to comply with changes in Laws, (viii) other expenses not within Landlord’s reasonable control.
Controllable Operating Expenses. Landscaping maintenance, parking lot sweeping, plumbing, Tri-Water System maintenance, janitorial services and supplies, trash removal, security and life safety, pest control, elevator maintenance, parking and walkways, locks and keys, window washing, lighting maintenance, roof maintenance, painting and sealing, general maintenance, paving maintenance, windows, doors, screens, signs, common area maintenance and management fees
Controllable Operating Expenses. (a) As used herein the following terms shall have the following meanings:
Controllable Operating Expenses. ATTACHED TO AND A PART OF THE LEASE AGREEMENT DATED NOVEMBER 25, 1997, BETWEEN SECURITY CAPITAL INDUSTRIAL TRUST and L. A. T SPORTSWEAR, INC. F/K/A SPZ INC., DBA FULL LINE DISTRIBUTORS