Common use of Cap on Operating Expense Increase Clause in Contracts

Cap on Operating Expense Increase. Tenant shall not be responsible for payment of Tenant’s Proportionate Share of Total Operating Expenses for any year, exclusive of real estate taxes, assessments, insurance, utility costs, janitorial services, trash removal, elevator, escalator and HVAC maintenance costs allocated to the Premises, in excess of six percent (6%) over the Total Operating Expenses for the prior Lease Year, exclusive of real property taxes, assessments, insurance, utility costs, janitorial services, trash removal, elevator, escalator and HVAC maintenance costs allocated to the Premises. For purposes of calculating Operating Expense increases subject to this provision, landlord shall apply the six percent (6%) cap separately to each expense category not specifically excluded herein, it being the intent of the parties hereto that non-excluded expense categories shall not be grouped together or averaged in arriving at allowable increase amounts.