Contracts

A Connecticut commercial lease 'gross-up' provision allows the landlord to:

AIncrease the base rent each year
BCalculate operating expenses as if the building were fully occupied, preventing under-recovery when the building has vacancies✓ Correct
CCharge tenants for improvements
DTransfer maintenance obligations to tenants

Explanation

A gross-up provision allows landlords to calculate variable operating expenses (utilities, janitorial) as if the building were at full (typically 95%) occupancy. This prevents under-recovery of expenses when the building has vacant space.

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