Increase in Operating Expenses Clause Samples
The "Increase in Operating Expenses" clause defines how additional costs incurred during the operation of a business or property are managed between the parties involved. Typically, this clause outlines the circumstances under which operating expenses may rise, such as increases in utility costs, maintenance fees, or property taxes, and specifies how these increased costs are allocated—often allowing a landlord to pass a proportionate share of the increase on to tenants. Its core practical function is to ensure that the financial burden of rising operational costs is fairly distributed, protecting the interests of the party responsible for paying these expenses and providing predictability for both sides.
Increase in Operating Expenses. (a) The base year (the “Base Year”) for purposes of this Lease shall be the calendar year 2015. “Operating Expenses” shall mean the expenses incurred by Landlord in the operation, administration and maintenance of the Premises and of the “Common Areas” of the Building and the Corporate Campus 1, as applicable, other than the Premises and all other demised premises in Corporate Campus 1 designated for occupancy by tenants, in a first class manner and in accordance with sound and reasonable practices for facilities of a like kind and character in accordance with (and subject to) Exhibit “F” hereto. Subject to Exhibit F, Operating Expenses for the Common Areas shall include, without limitation, all expenses incurred by Landlord in connection with the Campus Road and sewage pump station and related equipment serving Corporate Campus 1 which, in accordance with generally accepted accounting principles consistently applied, as applied to the operation and maintenance of first-class office parks, are properly chargeable to the operation and maintenance of Corporate Campus 1. Tenant’s proportionate share of Operating Expenses for Corporate Campus 1 is 9.11% (“Tenant’s Proportionate Share Park”); Tenant’s proportionate share of Operating Expenses for the Building is 54.48% (“Tenant’s Proportionate Share Building”). (“Tenant’s Proportionate Share Park” and “Tenant’s Proportionate Share Building” are hereinafter referred to, collectively, as “Tenant’s Proportionate Shares”). Tenant’s Proportionate Shares shall also apply to Increases in Real Estate Taxes as provided in Article 8 hereof. Tenant’s Proportionate Shares shall be adjusted, as necessary, to reflect increases only in the total rentable square feet contained in Corporate Campus 1, resulting from construction of space therein, or any other cause.
Increase in Operating Expenses. Tenant shall pay to Landlord Tenant's Share of the Increase in Operating Expenses. The "Increase in Operating Expenses" is the increase in Operating Expenses in any calendar year over the Operating Expenses in the Base Year.
Increase in Operating Expenses. If the Operating Expenses during any calendar year within which the Term of the Lease falls in whole or in part exceeds the Base Year Operating Expenses, Tenant will pay to Landlord as additional rent Tenant’s Proportionate Share of any such excess. There will be an annual cap of 5% on Landlord’s controllable expenses (e.g., in no event shall the controllable Operating Expenses increase by more than 5% over the prior year Operating Expenses and any amounts in excess thereof shall be at Landlord’s sole expense). Any such payments will be prorated for the last year of the Term. Controllable expenses shall mean all expenses other than real property taxes, insurance premiums, water, electric/natural gas expense, and snow and ice removal.
Increase in Operating Expenses. (a) Within a reasonable period of time after the expiration of the Base Year and each Operational Year, Sublandlord shall furnish to Subtenant a written statement prepared by Sublandlord of the Operating Expenses incurred for such year. Sublandlord shall use good faith efforts to deliver such statement to Subtenant within one hundred twenty (120) days after the expiration of the Base Year and each Operational Year. Within thirty (30) days after receipt of such statement for any Operational Year setting forth Subtenant’s Share of any increase of Operating Expenses during such Operational Year over the Operating Expenses in the Base Year (said increase being referred to herein as the “Cost Increase”), Subtenant shall pay same (less the amount of Subtenant’s Estimated Share paid by Subtenant on account thereof) to Sublandlord as Additional Rent.
(b) Commencing with the first Operational Year, Sublandlord may make a good faith estimate of the Additional Rent to be due by Subtenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term after the Base Year, Subtenant shall pay to Sublandlord, in advance concurrently with each monthly installment of Fixed Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months therein. From time to time, Sublandlord may estimate and re-estimate the Additional Rent to be due by Subtenant and deliver a copy of the estimate or re-estimate to Subtenant. Thereafter, the monthly installments of Additional Rent payable by Subtenant shall be appropriately adjusted in accordance with the estimations so that, by the end of the calendar year in question, Subtenant shall have paid all of the Additional Rent as estimated by Sublandlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Expenses are available for each calendar year.
(c) If Sublandlord’s Statement at the end of the Operational Year just completed shall indicate that Subtenant’s Estimated Share exceeded Subtenant’s Share of the Cost Increase, Sublandlord shall issue a credit to Subtenant for the amount of such excess against the subsequent payments of Additional Rent due hereunder. If Sublandlord’s Statement shall indicate that Subtenant’s Share of the Cost Increase exceeded Subtenant’s Estimated Share for the completed Operational Year, then Subtenant shall pay the amount of such exc...
Increase in Operating Expenses. Tenant shall pay as Rent Tenant's Percentage Share of the total dollar increase, if any, in the Operating Expenses paid or incurred by Landlord during each twelve (12) month period following the Base Year (each such twelve (12) month period being hereinafter referred to as a "Lease Year") over the Operating Expenses paid or incurred by Landlord during the Base Year.
Increase in Operating Expenses. Rent shall include Tenant's Percentage Share of the total dollar increase, if any, in the Reimbursable Operating Expenses paid or incurred by Landlord during the calendar year over the Reimbursable Operating Expenses paid or incurred by Landlord during the Base Year. As used in this Lease, the term "Reimbursable Operating Expenses" shall mean seventy-three percent (73%) of total Operating Expenses, it being the parties intention that Landlord shall not be entitled to pass through to Tenant or seek reimbursement for twenty-seven percent (27%) of total Operating Expenses.
Increase in Operating Expenses. In the event there is any increase during any year of the Lease Term in the “Operating Expenses” for the Building (as such expenses are described hereinafter and are customarily and consistently applied to all tenants of the Building) over and above the amount of such Operating Expenses during the calendar year which the Lease Term commences ( 2025 “base year”) and upon presentation of proof of the increased expenses and paid invoices provided by Landlord to Tenant, Tenant shall pay to Landlord, within thirty (30) days, an amount equal to 40.59% of the increase in the Operating Expenses (“Tenant’s Pro-Rata Share”), which is calculated by dividing the Tenant’s rentable share of the Building (6,853 SF) by the entire rentable area of the Building (16,883 SF). Notwithstanding the foregoing, if at any time the Building is less than ninety-five percent (95%) leased, Tenant’s Pro-Rata Share shall be recalculated to be a percentage equal to the ratio of rentable area in the Premises to the leased rentable area in the Building.
Increase in Operating Expenses. Tenant shall pay to Landlord (a) Tenant's Building Share of the Increase in Building Operating Expenses and (b) Tenant's Site Share of the Increase in Site Operating Expenses. The "Increase in Building Operating Expenses" is the increase in Building Operating Expenses in any calendar year over the Building Operating Expenses in the Base Year. The "Increase in Site Operating Expenses" is the increase in Site Operating Expenses in any calendar year over the Site Operating Expenses in the Base Year.
Increase in Operating Expenses. Pass-Through. -------------------------------------------
Increase in Operating Expenses. Commencing January 1, 2005, Tenant shall pay to Landlord five and 14/100 percent (5.14%) (being the stipulated proportion which the rentable area of the Premises bears to the total rentable office area of the Building) of the increase in Operating Expenses during the Term over Initial Operating Expenses.