CLEAN Operating Costs and other Additional (干净的运营成本和其他额外的).pdf

CLEAN Operating Costs and other Additional (干净的运营成本和其他额外的).pdf

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CLEAN Operating Costs and other Additional (干净的运营成本和其他额外的)

1 Operating Costs and other Additional Rents in a Commercial Lease 1 from a Tenant’s Perspective. Tenants usually understand the terms “minimum rent” and “percentage rent”. They also understand that in a typical commercial lease there is an obligation to pay an assortment of additional costs (usually termed “additional rent”), including: the utilities consumed in their premises; the realty taxes applicable to their premises and the development; business taxes if levied on the business being conducted from their premises; promotion and advertising charges; heating, ventilating and air conditioning (“HVAC”) charges; and a contribution to common area costs (“CAM Costs”). It is, however, the extent of charges within additional rent, primarily CAM Costs, which can catch the unwary tenant and cause a significant increase in the tenant’s additional rent. Landlords use broad, generic language in their offers to lease to describe CAM Costs, with the devil being found in the detail of the lease. To the tenant’s detriment, once the offer is signed by both parties, it is legally committed. From a business perspective, (since there is now both a legal and psychological commitment to the deal), there could be little latitude or fortitude to negotiate. Some landlords invoke a ‘no lease no keys’ policy denying the tenant occupancy until the lease is executed, even though the time periods in the lease (the fixturing period for example) continue to run. This adds to the pressure for the tenant to sign the lease and possibly to back off

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