Operating Expenses Escalation Sample Clauses
The Operating Expenses Escalation clause defines how increases in a property's operating costs are handled over the term of a lease. Typically, this clause allows the landlord to pass on a proportionate share of rising expenses—such as utilities, maintenance, or property taxes—to the tenant, often based on increases above a specified base year or amount. By outlining the method for calculating and allocating these additional costs, the clause ensures that landlords are not solely responsible for inflation-driven expense increases, while tenants are made aware of their potential financial obligations beyond base rent.
Operating Expenses Escalation. Tenant hereby covenants and agrees that for each Lease Year in which Operating Expenses shall exceed the Operating Expenses for the Base Year, Tenant shall pay to Landlord as additional rent Tenant’s Percentage of such excess Operating Expenses. For the purposes of the provisions of this Rider:
Operating Expenses Escalation. 6.1. Following the end of each Comparison Year, Tenant shall pay to Landlord, Additional Rent, within thirty (30) days after receipt of a statement of the amount thereof, Tenant's pro rata share, as specified in Paragraph 3.7, of the amount of the increase, if any, of the Operating Expenses, including Real Estate Taxes for the Comparison Year over the Base Year. If the system of real estate taxation shall be altered or varied and any new tax or levy shall be levied or imposed on said land, Building and improvements, and/or Landlord, in substitution for real estate taxes presently levied or imposed on immovables in the jurisdiction where the Building is located, then any such new tax or levy shall be included within the term "Real Estate Taxes."
6.2. For purposes of this Article: (a) The term "Operating Expenses" shall mean any and all expenses incurred by Landlord in connection with the operation, maintenance and repair of the Building including, but not limited to the following: Real Estate Taxes, as defined below, and impositions, general and special, of whatever kind or description levied against the Building, electricity, fuel, water, sewer, gas, oil and other utility charges (except to the extent separately submetered pursuant to Paragraph 8.2 below); security; pest control; cleaning of windows and exterior curtain walls; janitorial services; trash and snow removal; landscaping and repair and maintenance of grounds; salaries, wages, and benefits for employees of Landlord engaged in the operation, maintenance or repair of the Building, including benefits, payroll taxes and worker's compensation insurance; license fees, casualty and liability insurance; building or cleaning supplies; uniforms and dry cleaning service; supplies, repairs, replacements and other expenses for maintaining and operating the Building; the cost, including interest, amortized over its useful life or payback period of any capital improvement made to the Building which is required under any governmental law or regulation that was not applicable to the Building at the time it was constructed or of installation of any device or other equipment which improves the operating efficiency of any system within the Building and thereby reduces operating expenses; service or management contracts with independent contractors, general overhead; administrative expenses; management fees; telephone, telegraph and stationery. (b) The term "Base Year" shall mean the calendar year 1998.
Operating Expenses Escalation. “Operating Expenses” means all costs, expenses, and disbursements of every kind, nature or description (including, but not limited to, a fee for management of the Property) and shall include all costs, expenses and fees incurred by Landlord in connection with or attributable to the operation and management of the Property, including, but not limited to the following items:
Operating Expenses 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 Landlord, as additional rent, commencing on (i) December 1, 1995 with respect to the Initial Premises and (ii) December 1, 1998 with respect to the Additional Fourth Floor Premises, and in each year thereafter, the amount stated opposite the appropriate year in Exhibit F, attached hereto and made a part hereof (the "Operating Expense Payment"), all in accordance with paragraphs (c) through (g) below.
Operating Expenses Escalation. Tenant shall pay to Landlord, as additional rent, operating expense escalation in accordance with this paragraph B:
(i) Definitions: For the purpose of this paragraph, the following definitions shall apply:
Operating Expenses Escalation. Pursuant to Section 7(b)(iv) of the Lease, the Cap permits Landlord to recover in calendar year 2002 an Operating Expenses Escalation of only $.88 per rentable square foot, which is equal to a total of $44,550.00 or $3,712.50 per month, calculated by multiplying $.88 times 50,625 rentable square feet, and dividing the product by 12, as follows: $.88 x 50,625/12 = $3,712.50 Inasmuch as the estimated Operating Expenses Escalation, without reference to the Cap, for calendar year 2002 is equal to a total of $3,712.50 per month, the monthly amount payable by Tenant during calendar year 2002, commencing on the Expansion Date, shall be the Cap amount or $3,712.50 per month. (Tenant shall be separately invoiced by Landlord for the Operating Expenses Escalation deficit (the difference between what was actually paid by Tenant and what was actually due) for the period from January 1, 2002 up to the Expansion Date.)
Operating Expenses Escalation