A Tenant’s Guide To Operating Expense Escalations

Law360, New York (February 8, 2013, 1:50 PM EST) -- One of the largest expenses of conducting a business is rent. In the typical lease, a tenant will need to be mindful of not only any periodic fixed increases in rent, but also escalations that are based upon increases in the costs of operating, maintaining and repairing the building. The purpose of these escalations is to ensure that the “net” rent received by the landlord is not reduced by the normal inflationary type costs of operating and maintaining the building.

Charging the tenant for its pro...
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