Abstract office leases with AI. Extract base year expense stops, TI allowances, after-hours HVAC rates, parking ratios, and holdover provisions from gross and modified gross leases.
By Angel Campa, Founder · Updated March 2026
Office leases typically operate under full service gross, modified gross, or gross structures where the landlord bundles operating expenses into base rent or recovers them through expense stops and escalation provisions. Base year stops — which establish the landlord's maximum expense contribution — are often the most financially consequential clause in an office lease, as they shift all expense growth above the base year amount to the tenant. Tenant improvement allowances, after-hours HVAC charges, and parking ratios are also heavily negotiated and must be precisely abstracted to avoid downstream billing disputes.
Typical Lease Term
3–10 years
Dominant Lease Structures
Base year expense stops determine the landlord's share of operating costs; a base year with artificially low expenses (e.g., a partially occupied building) can dramatically inflate tenant expense escalations in subsequent years.
Tenant improvement allowances in office leases often represent $30–$100+ per square foot in value; the disbursement conditions, completion deadline, and unused allowance treatment must be carefully extracted.
After-hours HVAC charges can add thousands of dollars monthly for tenants who operate outside standard building hours; the hourly rate, minimum charge, and advance notice requirement are all financially significant.
Holdover provisions in office leases frequently require 150–200% of base rent during holdover periods, making accurate tracking of expiration dates and renewal notice deadlines critical.
Parking ratios (spaces per 1,000 RSF) directly affect tenant operations, especially for professional services firms; reserved vs. unreserved allocations and monthly parking rates should both be abstracted.
These fields carry the highest financial and operational significance in office leases.
Lextract automatically detects these high-risk provisions in office leases.
Lextract extracts base year expense stop amounts, TI allowance total and per-RSF values, after-hours HVAC rates, parking space counts and ratios, holdover rates, and operating expense escalation caps from office leases.
A base year expense stop establishes the maximum amount the landlord will pay toward operating expenses per square foot in a given year, typically the first year of the lease. In subsequent years, the tenant pays any increase above that base year amount. If the base year was a low-occupancy year, tenants can face significant expense increases even when actual building costs rise modestly.
Lextract extracts the total TI allowance amount, the per-RSF allowance, any conditions on disbursement (such as completion milestones or lien waiver requirements), the deadline by which the allowance must be used, and the treatment of any unused allowance — including whether it converts to free rent or is forfeited.
Yes. Lextract extracts the holdover rate as a percentage of base rent and flags situations where the holdover rate exceeds 150% — a threshold commonly cited as punitive in office leases. The extraction also identifies whether holdover converts to a month-to-month tenancy or triggers automatic lease extension.
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