The Operating Expense Gross-Up

Landlords and tenants that include property taxes as a variable expense for purposes of a gross-up provision should provide for a thorough and detailed accounting methodology to avoid disputes when those expenses are billed.

21 minute read November 26, 2010 at 10:36 AM

David P. Resnick

The troubled state of the commercial leasing market has compelled most landlords to navigate every available avenue in order to induce cash flow from their properties. Negative economic conditions, and measures taken by landlords to offset them, sometimes create opportunities for a landlord to enhance its bottom line.

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