Who Sets the Markup When Your Landlord Resells You Electricity?
Four New York leases filed with the SEC price the same commodity four different ways. The Graybar Building lease guarantees SL Green a markup of at least 20% over its own utility bill, in a sentence that overrides the tenant's apparent protection of a 1970 Con Edison tariff. One Penn Plaza caps Vornado at 104% of metered cost and sends disagreements to expedited AAA arbitration, and separately raises fixed rent whenever the utility's average cost per kilowatt hour rises. G-III settles on 5% over a named rate schedule. Commercial power prices rose 24% in Ohio and 21.5% in Virginia in the year to July 2026, and the clause decides who absorbs it.