Operating Expense Statements Clause Samples
The Operating Expense Statements clause defines the landlord's obligation to provide the tenant with a detailed statement of the building's operating expenses, typically on an annual basis. This statement itemizes costs such as maintenance, utilities, insurance, and property taxes, and is used to calculate the tenant's share of these expenses under the lease. By requiring regular disclosure and breakdown of these costs, the clause ensures transparency and allows tenants to verify the accuracy of charges, thereby preventing disputes and promoting fair allocation of operating expenses.
Operating Expense Statements. Subject to the Abatement Period, Tenant shall make estimated monthly payments to Landlord on account of the amount of Operating Expenses that are expected to be incurred during each calendar year (or portion thereof). At the beginning of the Lease Term and at the beginning of each calendar year thereafter, Landlord shall submit a statement setting forth Landlord’s reasonable estimate of such Operating Expenses and Tenant’s Proportionate Share thereof (“Expense Statement”). Tenant shall pay to Landlord on the first day of each month following receipt of such Expenses Statement, until Tenant’s receipt of the succeeding Annual Expense Statement, an amount equal to one-twelfth (1/12) of each such share (estimated on an annual basis without proration pursuant to Section 5.4) (such monthly installment payment of Tenant’s Proportionate Share of Operating Expenses being referred to a “Monthly Operating Expense Payment”). From time to time during any calendar year, Landlord may revise Landlord’s estimate and adjust Tenant’s monthly payments to reflect Landlord’s revised estimate and/or the commencement of any Must Take Expansion Premises; provided that in each case Landlord sends a revised Expense Statement to Tenant. Within approximately ninety (90) days after the end of each calendar year, or as soon thereafter as is feasible, Landlord shall submit a statement (each an “Annual Expense Statement”) showing (1) a reasonably detailed line item statement of Operating Expenses incurred during the preceding calendar year, (2) Tenant’s Proportionate Share of Operating Expenses, and (3) the aggregate amount of Tenant’s estimated payments made on account of Operating Expenses during such calendar year. If such Annual Expense Statement indicates that the aggregate amount of such estimated payments exceeds Tenant’s actual liability, then Landlord shall credit the net overpayment toward Tenant’s next estimated payment(s) pursuant to this Section 5.2 (if applicable) or remit such net overpayment to Tenant within thirty (30) days. If such Annual Expense Statement indicates that Tenant’s actual liability exceeds the aggregate amount of such estimated payments, then within thirty (30) days after Landlord’s submission thereof, Tenant shall pay the amount of such excess as additional rent.
Operating Expense Statements. Statements, certified to be complete and accurate by Seller, of operating expenses and other financial and expense information required in order to compute any escalations of and adjustments in rent, additional rent, operating expenses, taxes, and other charges under the Leases;
Operating Expense Statements. A statement showing actual Operating Expenses and Tenant's Pro Rata Share of Operating Expense Excess shall be prepared by Landlord and delivered to Tenant within ninety (90) days after the end of any calendar year in which estimated Operating Expense Rental was paid or became due by Tenant under the provisions hereof. Within thirty (30) days after delivery of the statement, Tenant shall pay to Landlord the amount of any additional Operating Expense Rental shown thereon as due and unpaid. If Tenant's payments of estimated Operating Expense Rental shall have exceeded Tenant's actual liability for Operating Expense Rental, Landlord shall credit the amount of the excess to the installment(s) of estimated Operating Expense Rental next becoming due, provided that no Default is in existence. Tenant shall have 60 days from the date that Landlord delivers to Tenant the Operating Expense statement within which to perform, at Tenant's expense and during Landlord's normal business hours, an audit of Landlord's books and records with respect to the computation of Operating Expense for the year with respect to which the statement was issued.