Property Management
A Connecticut commercial tenant's lease has a 'gross-up' provision for operating expenses. This provision requires:
AThe tenant to pay more than their proportionate share of expenses
BVacant space to be treated as occupied for expense calculation purposes, so that all tenants share expenses based on a fully (or substantially) occupied building✓ Correct
CThe landlord to gross up the rent to account for inflation
DExpenses to be increased by a fixed percentage each year
Explanation
A gross-up provision ensures that when a building has significant vacancy, the variable operating expenses (such as utilities and janitorial) are 'grossed up' to what they would be at full occupancy, so tenants pay their share based on full occupancy rather than benefiting from lower expenses caused by vacancy.
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