Signing the lease what the base year amount is if

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signing the lease what the base year amount is if either this year’s or next year’s expenses are  used.  It will usually be to the landlord’s advantage to use the earliest year possible and to the  tenant’s advantage to use the latest.  An expense stop is similar to a base year except instead of using the actual number for a  given year the landlord simply quotes an amount.  If the expenses are higher than that amount the  tenant will have to pay his pro-rata share of the increase.   Tenants should take care that the  expense stop is in line with expected costs.  If it is too low there will be significant overages to  pay.  Most office leases are full service. The Gross Industrial lease is similar to the Triple Net lease except the lease rate includes  the payment of taxes and insurance.  The tenant is responsible for paying any increase over the  amount of taxes and insurance for a given year much like a base year.  If the property is a multi- tenant property the common area charges will also be added and usually are quoted as a per  square foot cost much like an expense stop.  Industrial leases are generally Gross Industrial or  Triple Net leases.
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  • Spring '11
  • Abner
  • tenant, landlord, triple net lease, insurance  premiums

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