Be careful with ‘expense clauses’ in commercial leases
It’s common in commercial leases for the tenant to pay a portion of the landlord’s property taxes and other expenses incurred in maintaining the property. Typically, the tenant’s portion is calculated as a pro-rata share, based on how much space in the building the tenant occupies. But be careful: This pro-rata share can be calculated in two ways – as a percentage of the leased space in the building, or as a percentage of the leasable