The Hidden Costs in an Office Lease

The Hidden Costs in an Office Lease

legal By: Patrick Gioffre

Ever heard of a "gross up" clause? Do you know why operating expense provisions could cost you thousands? There's danger lurking in an office lease, and associations should be privy to the ways building owners will aim to pass on additional expenses to tenants. Here's what to look for and how to be ready.

The financial components of most leases for office space include a base rent, an annual escalator, a tenant improvement allowance, perhaps some free rent and a pass-through of increases in operating expenses over a base year. ...