Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyLJN NewslettersNewsSections

In the Spotlight: Negotiation of Operating Expenses in an Office Lease

By Eric M. Greenberg

With so much of today's retail space being leased in mixed-use buildings, especially office buildings, developers and retailers should familiarize themselves with leasing concepts inherent in office leases. While the inner workings of CAM charges in a shopping center are familiar territory for the developer and the retailer, the negotiation of operating expenses in an office lease poses a different sort of challenge. It is important to discuss this topic because the allocation of which party pays the costs of an office building's operating expenses is one of the most negotiated provisions in an office lease.

Naturally, a landlord will attempt to include as many items as possible in its list of building operating expenses of which tenant must pay a proportionate share, and a tenant will attempt to exclude as many of those items as it can. Negotiation of what is included and excluded in operating expenses can have a drastic effect on a tenant's (and landlord's) bottom line. What first seems like an acceptable figure for base rent may no longer look like a bargain after a landlord's laundry list of operating expenses is added to the mix. The intent of this discussion is to provide a brief overview of commonly negotiated operating expenses. This article presents both the landlord and tenant perspective for each operating expense issue discussed.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.