Operating Expenses Exclusions Sample Clauses
The Operating Expenses Exclusions clause defines specific costs that are not to be included when calculating the operating expenses for a property or business. Typically, this clause lists items such as capital expenditures, debt service, or costs attributable to other tenants, ensuring that only appropriate, routine expenses are passed on to tenants or stakeholders. By clearly outlining these exclusions, the clause prevents disputes over expense allocation and protects parties from being charged for costs beyond the intended scope of operating expenses.
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Operating Expenses Exclusions. 1.1 any increase in Landlord’s insurance rates which may result from the negligent failure of Landlord or its agents, employees or contractors to comply with the provisions of this Lease;
1.2 depreciation;
1.3 interest on and amortization of debt;
1.4 the cost of leasehold improvements, including redecorating work, for other tenants of the Building;
1.5 fees and expenses (including legal and brokerage fees) for procuring new tenants for the Building;
1.6 costs incurred in financing or refinancing of the Building;
1.7 the cost of any work or service performed for any tenant in the Building (other than Tenant) to a materially greater extent or in a materially more favorable manner than that furnished generally to tenants (including Tenant) in the Building;
1.8 the cost of any repair or replacement which would be required to be capitalized under generally accepted accounting principles except as set forth in Section 29 K(a)1.11;
1.9 the cost of any item included in Operating Expenses to the extent that Landlord is actually reimbursed for such cost by an insurance company, a condemning authority, another tenant of any other party;
1.10 ground rent;
1.11 to the extent paid for from the management fee, wages, salaries or other compensation paid to any employees at or below the grade of Building manager, and in any event, salaries or other compensation paid to employees above such grade;
1.12 wages, salaries or other compensation paid for clerks or attendant in concessions or newsstands operated by Landlord;
1.13 the cost of correcting defects (latent or otherwise) in the construction of the Building or in the Building equipment, except that conditions (other than construction defects) resulting from ordinary wear and tear shall not be considered defects for purposes hereof;
1.14 the cost of installing, operating and maintaining any specialty service (e.g., observatory, broadcasting facility, luncheon club, retail stores, newsstands or recreational club);
1.15 any costs representing an amount paid to a corporation related to Landlord which is in excess of the amount which would have been paid to an unrelated entity performing the same service;
1.16 payments for rented equipment outside the ordinary course of business; and
1.17 any expenses for repairs or maintenance to the extent reimbursed by warranties or service contracts.
Operating Expenses Exclusions. Operating Expenses shall not include (a) depreciation on the Building; (b) debt service, rental under any ground or underlying lease, or interest, principal, points and fees on any mortgage or other debt instrument encumbering the Building (except that, as provided in Paragraph 7.1 above, Landlord may include interest in the amortization of certain capital expenditures); (c) legal expenses incurred in negotiating leases, collecting rents, evicting tenants or costs incurred in legal proceedings with or against any tenant or to enforce the provisions of any lease, (d) the cost of decorating, improving for tenant occupancy, painting or redecorating portions of the Building to be demised to tenants; (e) advertising expenses relating to vacant space; (f) real estate brokers’ or other leasing commissions; (g) costs for which Landlord is reimbursed by insurance or condemnation proceeds, other tenants or any other source, and Landlord shall use commercially reasonable efforts to pursue claims under existing warranties and/or guaranties or against other responsible third parties to pay such costs; provided, that, the cost of pursuing such claims shall be included in Operating Expenses; (h) any bad debt loss, rent loss, or reserves for bad debt loss or rent loss; (i) costs incurred in connection with the operation of the business of the entity constituting Landlord, as distinguished from the costs of operating the Building, including accounting and legal matters, costs of defending any lawsuits with any mortgagee, costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord’s interest in the Building; (j) Landlord’s political or charitable contributions; (k) the cost of any “tenant relations” parties, events or promotions; (l) insurance which is not customarily carried by institutional owners of Comparable Buildings; (m) costs to repair or replace the Project resulting from any insured casualty (except commercially reasonable deductibles under Landlord’s insurance policies may be included in Operating Expenses to the extent permitted pursuant to Paragraph 7.1(b)); (n) repairs, alterations, additions, improvements or replacements made to rectify or correct any defect in the design, materials or workmanship of the Project (as opposed to the cost of normal repair, maintenance and replacement expected in light of the specifications of the applicable construction materials and equipment) or to comply with any Applicable Laws in effect as of the S...
Operating Expenses Exclusions. Notwithstanding anything contained in Paragraph 6 of the Lease to the contrary, the following shall be excluded from operating expenses for the purposes of the Lease:
a. Costs incurred in renovating or otherwise improving or decorating or redecorating space for tenants or other occupants in the Building or vacant leasable space in the Building.
b. Landlord's costs of electricity and other services sold to tenants and which are not standard for the Building, or for which Landlord is reimbursed by tenants as an additional charge or rental.
c. Except as otherwise expressly permitted in Paragraph 6, the cost of any improvements, additions, changes, replacements, equipment, which under generally accepted accounting principles are required to be classified as capital expenditures (whether incurred directly or through a lease or service contract or otherwise).
d. Depreciation of the Building and all equipment, fixtures, improvements and facilities used in connection therewith.
e. Material expenses in connection with services or other benefits of a type which are not standard for the Building and which are not available to Tenant without specific charge therefor, but which are provided to another tenant or occupant.
f. Costs (including penalties, fines and associated legal expenses) incurred due to the violation by Landlord of the terms and conditions of the Lease, or any applicable federal, state, and local governmental laws, ordinances, orders, rules and regulations, which costs would not have been incurred but for such violation by Landlord.
g. Overhead and profit increments paid to subsidiaries, partners or other affiliates of Landlord for services on or to the Building, to the extent that the costs of such services exceed competitive costs for such services rendered by persons or entities of similar skill, competence and experience, other than a subsidiary of Landlord. Management fees charged to operating Expenses shall not exceed similar fees charged in connection with the operation of projects of like location, size, character and quality.
h. Costs of Landlord's general corporate overhead and general administrative expenses, which would not be chargeable to operating expenses of the Building, determined in accordance with generally accepted accounting principles, consistently applied; and all costs related to maintaining Landlord's existence as a corporation, partnership or other entity.
i. All services for which Tenant (or any other tenant of the Building)...
Operating Expenses Exclusions. Notwithstanding the foregoing, Operating Expenses shall exclude or have deducted therefrom, as the case may be:
(i) Leasing commissions;
(ii) The cost of tenant finish improvements provided solely for the benefit of other tenants or proposed tenants in the Building;
(iii) Depreciation on the Building;
(iv) The cost of services separately charged to and paid by another tenant in the Building;
(v) Interest payments and financing costs associated with Building financing;
(vi) Legal fees associated with the preparation, interpretation and/or enforcement of leases;
(vii) Repairs and replacements for which and to the extent that Landlord has been reimbursed by insurance and/or paid pursuant to warranties.
(viii) Advertising and promotional expenses;
(ix) Costs representing amounts paid to an affiliate of Landlord for services or materials which are in excess of the amounts which would have been paid in the absence of such relationship; and
(x) Repairs and replacements necessitated by the negligence of other tenants.
Operating Expenses Exclusions. Operating Expenses shall exclude the following:
A. Except as otherwise provided herein, including the nature preserve and driveway leading to the Real Estate, the portion of Operating Expenses which relate to more than one building or project to the extent that cost should be allocated to a building or project which is not occupied by Tenant, including, for example, employee expenses, office expenses, parking lot maintenance and repairs. All such expenses shall be allocated among the buildings or projects which benefit there from based upon the extent of benefit and shall generally be allocated on a Rentable Square Foot basis. No portion of any employee's wages, benefits, or taxes allocable to time spent on the development, marketing, leasing or collection of debts related to the Building shall be included in Operating Expenses;
Operating Expenses Exclusions. Cost of decorating, redecorating, or special cleaning or other services not provided on a regular basis to tenants of the building;
Operating Expenses Exclusions. Subject to the provisions of the penultimate sentence of Section 10.1. the term Operating Expenses excludes:
(a) all expenses and costs for structural repairs or replacements at the Building, and all expenses relating to the repair of the roof, including the roof membrane, of the Building.
(b) all expenses and costs for repair of the heating, ventilating and air conditioning systems at the Building during the first Lease Year.
Operating Expenses Exclusions depreciation and amortization of the Building or Project and any equipment;
Operating Expenses Exclusions. Notwithstanding anything to the contrary contained in the Lease, Operating Expenses shall not include any of the following:
Operating Expenses Exclusions. Operating Expenses do not include: expenses for repairs, restoration or other work occasioned by fire, wind, the elements or other casualty to the extent they are covered by insurance proceeds; expenses incurred in leasing to or procuring of lessees; leasing commissions, advertising expenses and expenses for the renovating of space for new lessees; interest or principal payments on any mortgage or other indebtedness of Lessor; compensation paid to any employee of Lessor above the grade of property manager; any depreciation allowance or expense; federal income taxes of Lessor; Operating Expenses which are the responsibility of Lessee or that portion of after-hours charges specifically attributable to increased utility costs as calculated by Lessor.