Operating Charges Sample Clauses
The OPERATING CHARGES clause defines the expenses that a tenant is responsible for paying in addition to base rent, typically covering costs related to the operation, maintenance, and repair of common areas or building systems. This may include items such as utilities, janitorial services, landscaping, security, and property management fees, with the landlord often providing an itemized breakdown or annual estimate. The core function of this clause is to allocate the ongoing costs of property upkeep between landlord and tenant, ensuring that the property remains well-maintained while clarifying each party’s financial obligations.
Operating Charges. Tenant shall pay to Landlord, as additional rent, Tenant’s Proportionate Share of Operating Charges as defined below. Estimated amounts of such additional rent shall be paid in monthly installments in advance on the first day of each month during the Term. The initial estimated payment of Tenant’s Proportionate Share of Operating Charges is set forth in Section 1.9. From time to time during the Term, Landlord may notify Tenant in writing of any adjustment to the monthly installments to be paid by Tenant hereunder and thereafter Tenant shall make payments accordingly. Within sixty (60) days after the expiration of each calendar year or as soon thereafter as is reasonably practicable (but not later than 90 days after the expiration of each calendar year), Landlord shall notify Tenant of the actual Operating Charges for such calendar year and provide Tenant a written statement thereof in reasonable detail. Within thirty (30) days after such notice, Tenant shall pay to Landlord or Landlord shall credit against the obligations of Tenant, as the case may be, the difference between the estimated payments made by Tenant during the prior calendar year and the actual amount of Tenant’s Proportionate Share of Operating Charges as shown on such statement. Tenant’s Proportionate Share of Operating Charges for the years in which the Term commences and ends shall be prorated based upon the number of days of the Term during such years. Tenant’s obligation for Tenant’s Proportionate Share of Operating Charges through the Termination Date shall survive termination.
Operating Charges. In addition to the Rent, the Lessee shall during the Term regularly and punctually bear and pay all charges for electricity and water consumed by the Lessee in the Unit in accordance with the electricity bills and water bills issued in respect thereof for which a separate meter is installed in the Unit by the Lessor.
Operating Charges. 3.1.1 From and after the Extension Term Commencement Date, Tenant shall pay as Additional Rent Tenant's Proportionate Share of the amount of Operating Charges for each calendar year to the extent falling within the Extension Term. Tenant's Proportionate Share with respect to Operating Charges shall be 56.60%, which has been calculated to be that percentage which is equal to a fraction, the numerator of which is the number of square feet of rentable area in the Premises and the denominator of which is the number of square feet of rentable area in the Building.
3.1.2 If the average occupancy rate for the Building during any calendar year is less than one hundred percent (100%), or if any tenant is separately paying for (or does not require) certain utilities or services which are furnished to its premises, then Landlord shall include in Operating Charges for such year all additional expenses, as reasonably estimated by Landlord, which would have been incurred during such year if such average occupancy rate had been one hundred percent (100%) and if Landlord paid for such utilities or services furnished to such premises.
3.1.3 Tenant shall make estimated monthly payments to Landlord on account of the amount of Operating Charges that are expected to be incurred during each calendar year (or portion thereof). On or before the Extension Term Commencement Date, Landlord shall submit a reasonably detailed written statement setting forth Landlord's reasonable estimate of Tenant's Proportionate Share thereof. Tenant shall pay to Landlord on the first day of each month following receipt of such statement, until Tenant's receipt of the succeeding annual statement, an amount equal to one‑twelfth (1/12) of each such share (estimated on an annual basis without proration). Not more than once during any calendar year, Landlord may revise Landlord's estimate and adjust Tenant's monthly payments to reflect Landlord's revised estimate. Within one hundred eighty (180) days after the end of each calendar year, Landlord shall submit a reasonably detailed written statement showing (1) Tenant's Proportionate Share of the amount of Operating Charges incurred during the preceding calendar year, and (2) the aggregate amount of Tenant's estimated payments made on account of Operating Charges during such year (“Reconciliation Statement”) for Operating Charges. If such Reconciliation Statement indicates that the aggregate amount of such estimated payments exceeds Tenant's actual liabili...
Operating Charges. For the period commencing on the Extension Date and ending in the Extended Termination Date, Tenant shall pay for its proportionate share of Operating Charges in accordance with the terms of the Lease, provided, however, during such period; the Operating Charges Base Year for the computation of Tenant’s proportionate share of Operating Charges shall be calendar year 2001.
Operating Charges. In addition to the rent set forth in Article 3 above, Tenant further covenants and agrees to pay to Landlord as additional rent ("Additional rent"), payable pursuant to the provisions herein:
(i) All real estate taxes and other taxes, licenses, permits, assessments made by governmental authorities and any and all other governmental charges or fees ("Taxes");
(ii) All liability, casualty, extended risk, rental interruption, and other insurance coverages deemed reasonably necessary by Landlord which relate to the Premises ("Insurance"); and
(iii) The aggregate of all costs and expenses incurred by Landlord in connection with the operation and maintenance of the Premises ("Operating Costs"). Such Operating Costs shall include, but not be limited to, the following:
(a) Public agency inspection fees or charges;
(b) legal and consulting fees and expenses;
(c) Management fees and compensation (including employment taxes and fringe benefits) of all employees who perform duties in connection with the operation, maintenance and repair of the Premises;
Operating Charges. 5.1 Tenant shall pay as additional rent to Landlord, Tenant's Proportionate Share (as defined in Section 1.3 above) of the amount by which Operating Charges (as defined in Section 5.2 below) during each Lease Year falling entirely or partly within the Lease Term exceed a base amount (the "Operating Charges Base Amount") equal to the actual Operating Charges for the first Lease Year (as adjusted pursuant to Section 5.4 below). Tenant's Proportionate Share is that percentage that is equal to a fraction, the numerator of which is the number of square feet of rentable area in the Premises, and the denominator of which is the number of square feet of rentable area in the Building, excluding the number of square feet of rentable area of any storage, roof or garage space.
5.2 (a) "Operating Charges" means all expenses, costs and disbursements of every kind that Landlord incurs in connection with the management, operation, repair and maintenance of the Building and the common areas within the Complex, which types of expenses are consistent with the management, operation, repair and maintenance of first-class office buildings of size and location similar to those of the Building, including but not limited to the following:
Operating Charges as used herein shall further be defined as the total cost to LESSOR of complying with LESSOR'S obligations under Article 24(a), (b), and (c) hereof (entitled Common Areas Maintenance, Operation, Insurance and Taxes by LESSOR). Any increase in the costs otherwise includable in OPERATING CHARGES which are directly attributable to a Strip Center tenant's wilful action or negligence, change of use in a unit within Strip Center or alterations, additions, and/or improvements to a unit within Strip Center shall be excluded from OPERATING CHARGES computations.
Operating Charges. Tenant shall pay, as additional Rent, the Property's Operating Charges. "Operating Charges" shall mean the expenses reasonably incurred by Landlord or Tenant in the ownership and operation of the Property, such as: gas, water, sewer, electricity and other utility charges, premiums and other charges for insurance; maintenance and repair of the Property; property taxes; groundskeeping; landscaping; snow removal; Common Area fees and any Association Fees; and HVAC. Operating Charges shall not include expenses of a capital nature, including, but not limited to, capital improvements, capital repairs, capital equipment, and capital tools which, under generally accepted accounting principles, are not regarded as operating or maintenance expenses, such as: roof, outside walls, foundation, and structural portions of the Property, and the exterior of the building on the Property ("Building"). If the exact amounts of Operating Charges are not available at the expiration of the Lease, and if, in Landlord's reasonable estimation, Tenant's estimated payments have not been sufficient to cover Tenant's actual Operating Charges then the balance shall be due and payable concurrently with the final installment of Base Rent due hereunder, or, at Landlord's option, such payment shall be postponed until such amounts are determined. Tenant's obligation to make such payments shall survive the expiration or termination of this Lease.
Operating Charges. For the period commencing with the Sixth Amendment Expansion Effective Date and ending on the Termination Date, Tenant shall pay for its Proportionate Share of the Operating Charges applicable to the Sixth Amendment Expansion Space in accordance with the terms of the Lease, provided, however, during such period, the Operating Charges Base Year for the computation of Tenant’s Proportionate Share of Operating Charges applicable to the Sixth Amendment Expansion Space is 2000.
Operating Charges. Tenant acknowledges that Tenant’s payments on account of Operating Charges in respect of the Existing Lease through the Effective Termination Date shall have been based upon estimated amounts of Operating Charges in respect of the Existing Lease for calendar year 2009. At the time that the actual amount of Operating Charges in respect of the Existing Lease for calendar year 2009 are determined, Tenant shall promptly pay any underpayment of Operating Charges in respect to the Existing Lease to Landlord, or Landlord shall promptly apply any overpayment of Operating Charges in respect of the Existing Lease to the next installment(s) of yearly Rent under the New Lease.