Article 7 of the lease for The Meadows Racetrack & Casino, signed 9 September 2016, says that any imposition the lessee owes which would not otherwise be due until after the term is payable to the lessor on the last day of the term. Then a proviso carves assessments payable in installments back out. C-PACE assessments run up to thirty years in Ohio, sit on the property tax bill, and carry the lien priority of an ad valorem tax. Texas requires thirty days notice and written consent from the mortgage holder before one is imposed and says nothing about tenants; Florida's statute defines property owner to exclude anyone renting or occupying. Gladstone Commercial's December 2024 noteholders wrote a covenant that stops counting a PACE loan as debt to the extent a tenant pays it. No reported case anywhere decides whether it passes through under a lease taxes clause.
Lexicon Pharmaceuticals signed a lease on 30 July 2024 that stipulates its suite at 25,368 square feet of Rentable Area, confirmed by two architects under ANSI/BOMA Z65.1-2017 Method A, and then says that following the initial Term the landlord may remeasure. About 5,666 of those 25,368 feet are add-on factor the tenant never walks into. The 2024 revision of the office standard moved ground-level outdoor amenity space into rentable area, and measurement firms are quoting 3 to 4% of found area in Class A buildings, which on a 400,000 square foot building at $40 a foot and a 6% cap rate is $8 million of value. Three other SEC-filed leases answer the same question differently: one bite only, deleted outright, and never. McClain v. Octagon Plaza held in 2008 that a clause agreeing the square footage is a reasonable approximation and that rent is not subject to revision does not stop a fraud claim over 186 feet.
Four executed office leases filed with the SEC all gross up the base year for operating expenses, and no two do it the same way. Life360's lease at 539 Bryant Street grosses the base year up to 95% occupancy and then, in the next three sentences, strips amortized capital costs and market-wide extraordinary increases out of that same base year and puts a floor under utility, service and insurance costs in every later year. Alarm.com's Ninth Amendment, signed 12 March 2020, grosses up base year expenses to 95% and leaves base year taxes at actual. Spaceflight's Herndon lease grosses up to 100% and adds that base year management fees are grossed up as if the building were fully leased with full rents regardless of rental abatements. Tufin's lease at 2 Oliver Street grosses up both years identically and then closes the base year audit window 60 days after the base year ends, before any reconciliation statement arrives. The only reported fight is about the denominator: a Dallas law firm claimed $419,007 and $104,601 in overcharges because its landlord ran the occupancy calculation on 285,111 square feet instead of the 280,432 stipulated in the lease, and the court held that a disclosed overcharge is a breach of lease, not fraud.
The 2026 Atlantic season has produced seven named storms and no hurricanes, and more than a billion dollars of damage. A hurricane deductible would not have fired once. A named storm deductible fires on a 45 mph tropical storm, and on a Gulf Coast property it is usually 5 percent of the insured value, which on a mid-sized shopping center is a seven-figure number the insurer never pays. The AIR CRE form then calls the loss an Insured Loss anyway, bills the deductible to the tenants as an operating expense, and caps rent abatement at insurance proceeds that were never released.
A landlord padlocked a Manhattan storefront over $270,493.21 in claimed arrears while the question of whether any rent was owed was still pending in another court. The Appellate Term held that self-help is available to commercial landlords, then listed four conditions the lease only satisfies one of. Change states and the same clause is worth everything, one month's rent, or nothing.
