What is proportionate share in lease?

What is proportionate share in lease?

The portion of a building occupied by the tenant expressed as a percentage. When a tenant is responsible for paying its proportionate share of the landlord’s costs for the building, such as operating expenses and real estate taxes, the tenant pays this amount over a base year.

What is proportionate share?

Proportional Share means with respect to each Seller, a percentage that is equal to (x) the number of Ordinary Shares to be sold by such Seller as set out on Exhibit B divided by (y) the aggregate number of Ordinary Shares to be sold by all Sellers.

How do you calculate tenant’s proportionate share?

The pro-rata share is the percentage of expenses shared by the tenant for the shopping center or office building. In most leases, the pro-rata share is calculated as a fraction of the tenant’s demised square footage divided by the total square footage of the shopping center or the building.

What is proportionate share education?

For children ages 3-5, the proportionate share is equal to the ratio of the number of children with disabilities parentally-placed in private schools who are enrolled by their parents in private, including religious, elementary schools located in the LEA to the total number of children with disabilities ages 3-5 …

How do you know if a share is proportionate?

All of that being said; the quickest – and therefore most common – method used today to determine a tenant’s proportionate share in a multi-tenant building or complex, is to simply use the gross square footage of the building or shopping center (the denominator) and dividing it by the gross square footage of a …

What is lease TMI?

A triple-net lease, often used with single-user industrial facilities, means that the tenant pays “TMI” – taxes, maintenance, and property insurance. Tenants also are responsible for all costs associated with their occupancy, including personal property taxes, janitorial services, and all utility costs.

What is modified gross lease?

A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease’s inception, but it takes on a proportional share of some of the other costs associated with the property as well, such as property taxes, utilities, insurance, and maintenance.

What is a tenant’s proportionate share of rent?

Tenants Proportionate Share means, for all purposes of this Lease, one hundred percent (100%.) SECTION 3.2 Tenant shall pay, commencing on the Rent Commencement Date, in addition to the Fixed Rent, and as Additional Rent, an amount (hereinafter “Tenant’s Tax Payment”) equal to Tenant’s Proportionate Share of the Real Estate Taxes.

What does “proportional share” mean in a commercial lease?

Relying on the principle that commercial leases should be interpreted in accordance with sound commercial principles and good business sense, the court reasoned: “. . . the only reasonable conclusion is that “proportional share” means that the tenant should pay for its fair share of the water it uses.

How is a tenant’s pro rata share determined?

In most cases, a Tenant’s Pro Rata Share is determined by the following fraction: Some leases will clearly state the square footage of the denominator. This will make the tenant’s Pro Rata Share easy to calculate and verify. Other leases may simply state a percentage amount.

How is the proportionate share denominator calculated?

In some cases, it will be based on the square footage of a single building but occasionally, it is calculated on the sum of a combination of buildings. In other cases, the Proportionate Share denominator is based on use (Retail tenants have their own denominator while office tenants have a different denominator. It’s rare but it happens).