Operating Expense Escalation Sample Clauses
The Operating Expense Escalation clause defines how increases in a property's operating expenses are allocated between the landlord and tenant over the term of a lease. Typically, this clause allows the landlord to pass on a portion of rising costs—such as utilities, maintenance, or property taxes—to the tenant, often by comparing current expenses to a base year or predetermined amount. Its core function is to ensure that the landlord is protected from bearing the full burden of increasing operating costs, while providing a clear mechanism for adjusting tenant payments as expenses change.
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Operating Expense Escalation. In order to adjust, during the term of this lease, for increases in the expenses of the Landlord in operating the building, the Tenant shall pay to the Landlord, as additional rent, commencing on April 1, 2001 and on each April 1 thereafter, the amount indicated in Schedule 1 as the Operating Expense Payment, such amount to be paid (in addition to the annual fixed rent) in twelve equal monthly installments.
Operating Expense Escalation. 7.1 For purposes of this Lease:
A. The term “Base Operating Factor” shall mean Operating Expenses, as hereinafter defined, for the calendar year 2013.
Operating Expense Escalation. 49.01 Tenant shall pay to Landlord, as Additional Rent, operating expense escalations in accordance with this Article:
Operating Expense Escalation. Commencing twelve (12) months following the Commencement Date, Subtenant shall pay Sublandlord an Operating Expense Escalation equal to two and one half percent (2.5%) per annum of the prior year’s Fixed Rent in lieu of any other payment on account of escalations in operating expenses for the Building, the Prime Lease Premises or the Premises, pursuant to the Prime Lease or otherwise (the “Operating Expense Escalation Payment”). For purposes of illustration, the Fixed Rent plus Operating Expense Escalation commencing twelve (12) months following the Commencement Date shall be as follows on a monthly and annual basis (it being understood that (i) the dates set forth below are based upon a Commencement Date of June 1, 2007 and in the event that the Commencement Date varies from that date, the dates set forth below shall vary accordingly) and (ii) if the final period is less than twelve (12) months, then the per annum sum of Fixed Rent plus Operating Expense Escalation for such period shall be prorated). June 1, 2007 – May 31, 2008 $ 2,626,920.00/annum $ 218,910.00/month June 1, 2008 – May 31, 2009 $ 2,692,593.00/annum $ 224,382.75/month June 1, 2009 – May 31, 2010 $ 2,759,907.80/annum $ 229,992.31/month June 1, 2010 – May 31, 2011 $ 2,828,905.52/annum $ 235,742.13/month June 1, 2011 – May 31, 2012 $ 2,899,628.47/annum $ 241,635.71/month June 1, 2012 – May 31, 2013 $ 2,972,119.18/annum $ 247,676.60/month June 1, 2013 – May 31, 2014 $ 3,046,422.16/annum $ 253,868.51/month June 1, 2014 – Expiration Date $ 3,122,582.71/annum $ 260,215.22/month
Operating Expense Escalation. During the Base Term, the annual Base Rent shall be adjusted for increases in Operating Expenses, (as hereinafter defined), in the following manner:
(a) The Base Rent includes an annual expense stop of Five and 05/100 Dollars ($5.05) per rentable square foot. The first year’s Estimated CAM and Operating Expenses are attached hereto as Exhibit E. Each twelve month period from the beginning of the Base Term shall be a lease year. Lessee shall be responsible for its proportionate share of the cost of Operating Expenses over the expense stop amount stated herein. Operating Expenses which are not directly attributable to the Demised Premises shall be prorated by dividing the total number of rentable square feet in the Demised Premises by the total number of square feet in the BF Building and the ▇▇▇▇▇▇ Island Executive Center Buildings.
(b) Lessor shall furnish Lessee, annually, statements prepared by the chief financial officer or general partner of Lessor and certified by such officer, partner or an independent certified public accountant showing Operating Expenses for the lease year. If Operating Expenses during the lease year are greater than the expense stop amount, Lessee shall pay its share of the overage to Lessor within thirty (30) days after receiving such certified statements. As used in this Article, “Operating Expenses” shall include only those items customarily considered in good accounting practice to be building operating expenses, to wit normal repairs not covered by insurance, maintenance, cleaning, janitorial services, utilities, supplies, real estate taxes, ▇▇▇▇▇▇ Island Executive Center LLC common area maintenance and assessment charges, premiums for fire, casualty and liability insurance with respect to the building containing the Demised Premises, and management fees not in excess of three percent (3%) of gross collections. Operating Expenses shall not include, among other things, any expenses related to financing, depreciation, amortization, ground rents, costs of a capital nature, costs for which Lessee or other occupants of the Building are charged other than pursuant to the Operating Expense clauses, costs of procuring lessees, attorneys’ fees, accounting fees, nor administrative salaries and wages except for personnel working exclusively for the buildings containing the Common Improvements. Operating Expenses shall include only those costs actually paid by Lessor.
Operating Expense Escalation. Lessee shall pay Lessor, as additional rent, Lessee's Share of Operating Expense, multiplied by the amount, if any, by which the Operating Expenses increase over the Operating Expense Base. The amount due Lessor hereunder if any shall be estimated by Lessor annually and such estimate shall be payable to Lessor in monthly installments over such year. At year end, the actual Operating Expenses incurred during that year shall be determined by Lessor, and any adjustment in such estimate shall be made, with additional payments by or refunds to Lessee, as appropriate. "Operating Expense" shall include reasonable and necessary expenses incurred by Lessor for the insurance of the Building and the , maintenance and insurance of the Land Common Area.
Operating Expense Escalation. If Landlord's Operating Expense for any Operating Year shall be greater than the Operating Expense Allowance, Tenant shall pay to Landlord as Additional Rent an amount equal to Tenant's Proportionate Share (as defined below) of the difference (the amount of Tenant's Proportionate Share of such difference is hereinafter- referred to as the "Operating Expense Adjustment"). If Tenant occupies the Leased Premises or portion thereof for less than a full Operating Year, the Operating Expense Adjustment will be allocated proportionately to the amount of time in such Operating Year that Tenant so occupies such space. Such Additional Rent shall be paid in the following manner: within one hundred twenty (120) days following the end of each Operating Year, Landlord shall furnish Tenant an Operating Expense Statement setting forth (i) the Operating Expense for the preceding Operating Year, (H) the Operating Expense Allowance and (iii) the Tenant's Operating Expense Adjustment for such Operating Year. Within fifteen (15) days following the receipt of such Operating Expense Statement (the "Expense Adjustment Date") Tenant shall pay to Landlord as Additional Rent the Operating Expense Adjustment for such Operating Year. Commencing with the first month of the lease term, tenant shall pay to landlord, on account of the operating expense adjustment for such Operating Year, monthly installments in advance equal to one-twelfth (1/12TH) OF THE estimated Operating Expense Adjustment for such Operating Year. On the next succeeding Expense Adjustment Date, Tenant shall pay to Landlord (or Landlord shall credit to Tenant) any deficiency (or excess) between the installments paid on account of the preceding year's Operating Expense Adjustment and the actual Operating Expense Adjustment for such Operating Year. As used in this Section 6 and Section 1 where applicable, the following words and terms shall be defined as hereinafter set forth:
Operating Expense Escalation. Owner shall have the option in any Operation Year to impose an "Operating Expense" increase for such Operation Year pursuant to this Article 41 in lieu of the Wage Formula Increase for such year. As used herein, the term "
Operating Expense Escalation. From and after the Effective Date, through the Rent Commencement Date, Tenant shall continue to pay additional rent for the Original Premises, including Tenant’s Proportionate Share of the excess of Operating Expenses pursuant to Article 2 of the Lease. From and after the Rent Commencement Date, Tenant shall be obligated to pay Tenant’s Proportionate Share of the excess of Operating Expenses for the 15th Floor Space pursuant to Article 2 of the Lease. For the purpose of calculating Tenant’s additional rent obligations under Article 2 of the Lease from and after the Rent Commencement Date for the 15th Floor Space, the following provisions shall apply: (i) “Base Year” shall mean, the calendar year 2010; and (ii) the term “Tenant’s Proportionate Share” shall mean, with respect to the 15th Floor Space, 2.61%.
Operating Expense Escalation. (a) Tenant shall pay, during the term of this lease (and any renewals thereof), the additional rent provided for in this Article. As used in this lease, the following terms shall have the meanings set forth below: