Operating Expense Increases Sample Clauses
The Operating Expense Increases clause defines how additional costs related to the operation and maintenance of a property are handled, typically in a lease agreement. It specifies that if the landlord's operating expenses—such as utilities, repairs, or property taxes—rise above a certain baseline or threshold, the tenant may be required to pay a proportionate share of those increased costs. This clause ensures that landlords are not solely responsible for unexpected or rising expenses, and it allocates the risk of fluctuating operating costs between the parties, promoting financial predictability and fairness.
Operating Expense Increases. Tenant shall pay to Landlord during the term hereof, in addition to the Base Rent, Tenant’s Share of the amount by which all Operating Expenses for each Comparison Year exceed the amount of all Operating Expenses for the Operating Expense Base Year. If less than 95% of the rentable square feet in the Building is occupied by tenants or Landlord is not supplying services to tenants occupying 95% of the rentable square feet of the Building at any time during any calendar year (including the Operating Expense Base Year), Operating Expenses for such calendar year shall be reasonably extrapolated by Landlord, on an item-by-item basis, to the amount of Operating Expenses that would normally be expected to be incurred had 95% of the Building’s rentable square feet been occupied and had Landlord been supplying services to tenants occupying 95% of the Building’s rentable square feet throughout such calendar year (hereinafter the “Grossed Up Operating Expenses”), and such amount shall be the Operating Expenses for such calendar year. Except as provided in paragraph (h) below, Landlord’s good faith estimate of Grossed Up Operating Expenses shall not be subject to challenge or recalculation by Tenant. Tenant’s Share of Operating Expense increases shall be determined in accordance with the following provisions:
Operating Expense Increases.
(a) Commencing on the first day of the month after which the first anniversary of the Rent Commencement Date occurs, Tenant shall pay to Landlord, as Additional Rent, Tenant’s Projected Share, as set forth in Section 6.01(j) hereof. After the expiration of each Operational Year, Landlord shall furnish Tenant a written statement (in commercially reasonable detail) prepared by ▇▇▇▇▇▇▇▇’s chief financial officer or Landlord’s independent certified public accountant (in accordance with sound commercial real estate management practices consistently applied in good faith), setting forth the Cost of Operation and Maintenance incurred for such Operational Year. Within twenty-five (25) days after receipt of such statement for any Operational Year setting forth Tenant’s Proportionate Share of any increase of Cost of Operation and Maintenance during such Operational Year over the amount of the Base Expenses (said increase being referred to herein as the “Cost Increase”), Tenant shall pay same (less the amount of Tenant’s Projected Share paid by Tenant on account thereof) to Landlord as Additional Rent.
(b) If ▇▇▇▇▇▇▇▇’s Statement at the end of the then Operational Year shall indicate that ▇▇▇▇▇▇’s Projected Share exceeded Tenant’s Proportionate Share of Cost Increase, Landlord shall permit Tenant to credit the amount of such excess against the subsequent payment(s) of Additional Rent due hereunder. If Landlord’s Statement shall indicate that Tenant’s Proportionate Share of Cost Increase exceeded ▇▇▇▇▇▇’s Projected Share for the then Operational Year, Tenant shall, within twenty-five (25) days after demand therefor, pay the amount of such excess to Landlord. If said Landlord’s Statement is furnished to Tenant after the commencement of such Operational Year, there shall be promptly paid by Tenant to Landlord or vice versa, as the case may be, an amount equal to the portion of such payment or credit allocable to the part of such Operational Year which shall have elapsed prior to the first day of the calendar month next succeeding the calendar month in which said ▇▇▇▇▇▇▇▇’s Statement is furnished to Tenant.
(c) Following the expiration of this Lease in accordance with the provisions hereof (and provided Tenant is not in default hereunder beyond applicable notice and cure periods), any overpayments by Tenant of any Additional Rent shall be refunded to Tenant within thirty (30) days of such Lease expiration.
Operating Expense Increases. Tenant shall pay to Landlord during the term hereof, in addition to the Base Rent, Tenant's Share of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year. If less than 95% of the rentable square feet in the Project is occupied by tenants or Landlord is not supplying services to 95% of the rentable square feet of the Project at any time during any calendar year (including the Base Year), Operating Expenses for such calendar year shall be an amount equal to the Operating Expenses which would normally be expected to be incurred had 95% of the Project's rentable square feet been occupied and had Landlord been supplying services to 95% of the Project's rentable square feet throughout such calendar year (hereinafter the "Grossed Up Operating Expenses"). Landlord's good faith estimate of Grossed Up Operating Expenses shall not be subject to challenge or recalculation by Tenant. Tenant's Share of Operating Expense increases shall be determined in accordance with the following provisions:
Operating Expense Increases. (a) Tenant shall during the term of this lease pay as additional rent an amount (per each square foot of rentable area within the leased premises) equal to the excess ("Excess") from time to time of actual Basic Cost per rentable square foot in the Building over $the operating expenses from the period of January 1, 1993 through December 31, 1993. *Landlord, at its option, may collect such additional rent in a lump sum, to be due and payable within thirty (30) days after Landlord furnishes to Tenant a statement of actual Basic Cost of the previous year, or beginning with January 1 of the first full calendar year following the Commencement Date, and on each January 1 thereafter. Landlord shall also have the option to make a good faith estimate of the Excess for each upcoming calendar year and upon thirty (30) days' written notice to Tenant may require the monthly payment of such additional rent equal to one-twelfth (1/12) of such estimate.
(b) By April 30th of each calendar year during Tenant's occupancy, or as soon thereafter as practical Landlord shall furnish to Tenant a statement of Landlord's actual Basic Cost for the previous year. If for any calendar year additional rent collected for the prior year as a result of Landlord's estimate of Basic Costs is in excess of the additional rent actually due during such prior year, then Landlord shall refund to Tenant any overpayment. Likewise, Tenant shall pay to Landlord, on demand, any underpayment with respect to the prior year.
Operating Expense Increases. Tenant shall pay to Landlord during the term hereof, in addition to the Base Rent, Tenant’s Share of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year. If less than 95% of the rentable square feet in the Project is occupied by tenants or Landlord is not supplying services to 95% of the rentable square feet of the Project at any time during any calendar year (including the Base Year), Operating Expenses for such calendar year shall be an amount equal to the Operating Expenses which would normally be expected to be incurred had 95% of the Project’s rentable square feet been occupied and had Landlord been supplying services to 95% of the Project’s rentable square feet throughout such calendar year. Tenant’s Share of Operating Expense increases shall be determined in accordance with the following provisions:
Operating Expense Increases. Tenant shall pay to Landlord, at the times hereinafter set forth, an amount equal to 4.95% of any increase in direct expenses paid or incurred by Landlord on account of the operation or maintenance of the building above such direct expenses paid or incurred by Landlord during the Base Year. "Base Year" as used in this subparagraph (c) shall mean the calendar year 1998. "Direct expenses" as used herein shall include all direct costs of operation and maintenance as determined by standard accounting practices as set forth in the Building Owners and Managers Association International (BOMAI) chart of accounts from time to time (excluding, however, any and all taxes of the nature set forth in subparagraph (B)
Operating Expense Increases. Tenant agrees to pay its Proportionate Share of Operating Expenses (as defined below) in excess of actual Operating Expenses for the calendar year 2006 (the “Base Year”), as more fully provided in Section 3.
Operating Expense Increases. For calendar year 2002 and each calendar year thereafter during the Term, an amount equal to the excess of Landlord’s Operating Expenses for such calendar year over the Operating Expense Base.
Operating Expense Increases. The cost of operating the Fund could increase as salaries and fees increase and as costs of other items rise. The Lease provides for a 2 percent increase annually in the rental income received by the Trustee. Operating expenses are estimated to increase by 2 percent annually. However, if operating expenses were to increase by an amount greater than the increase in rental income, this could result in a reduction in the amount of income available to be allocated to income beneficiaries.
Operating Expense Increases. Tenant shall pay to Landlord during the term hereof, in addition to the Base Rent, Tenant's Share, as hereinafter defined, of the amount by which all Operating Expenses, as hereinafter defined, for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "Operating Expense Increase," in accordance with the following provisions: