Gross up Clause that Should be Used in a Base Year Lease: Fill out & sign online

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What is the 95% gross up lease?

A gross-up is the act of a landlord distributing those variable operating expenses to tenants on a pro-rata basis as if the building was at 95%-100% occupancy. In some instances, this takes place even if the building has only one tenant.

What does it mean to gross up expenses?

Key Takeaways. A gross-up is an additional amount of money added to a payment to cover the income taxes the recipient will owe on the payment. Grossing up is most often done for one-time payments, such as reimbursements for relocation expenses or bonuses.

What does it mean to gross up expenses?

Key Takeaways. A gross-up is an additional amount of money added to a payment to cover the income taxes the recipient will owe on the payment. Grossing up is most often done for one-time payments, such as reimbursements for relocation expenses or bonuses.

What does gross up mean in real estate?

Simply stated, the concept of gross up provision stipulates that if a building has docHub vacancy, the landlord can estimate what the variable operating expense would have been had the building been fully occupied, and charge the tenants their pro-rata share of that cost.

What is a gross up provision in a lease?

Many commercial leases, especially office leases, include a provision that allows landlords to gross up operating expenses. That is, if the building is not fully occupied, the landlord is empowered to gross up or overstate the expenses as if the building is fully occupied (or nearly full).

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