With operating expenses, a break for one tenant means an added burden for the others.
Operating Expense Provisions In Commercial Leases
are far more complex than most parties to commercial leases suspect.
When analyzing such provisions the first and most obvious question is definitional: What constitutes an operating expense? The second and more complex question concerns how the operating expenses will be allocated among the landlord and the tenants. Since operating expenses can be both high and insidious, they require scrutiny and intense negotiation.
Defining Operating Expense
. The term "operating expenses" is a term that requires careful definition through negotiated agreement. Skilled parties to leases will negotiate specific expenses that are to be included within the definition of the term and specific expenses that are to be excluded from the term.
