A lease clause that adjusts variable operating expenses to reflect what they would have been at a specified occupancy level — typically 95% — preventing tenants from benefiting from artificially low costs during periods of high vacancy.
Without a gross-up provision, a tenant in a half-empty building might enjoy low operating expense pass-throughs, only to face sharp increases once the building fills up. The gross-up normalizes variable costs like cleaning, utilities, and management fees to a full-occupancy baseline. Fixed costs such as property taxes and insurance are not typically grossed up. Tenants should confirm the gross-up percentage (commonly 95% or 100%) and which expense categories are subject to the adjustment when reviewing lease abstracts.
Lextract extracts these fields directly from your lease PDF:
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