Cumulative vs. Non-Cumulative Caps on Operating Expenses in Commercial Leases
In many commercial real estate leases—including the AIR standard form—tenants are often responsible for a portion of the operating expenses (like maintenance, landscaping, repairs, etc.) through Additional Rent or Common Area Maintenance (CAM) charges. To protect tenants from significant year-over-year increases, leases may include a cap on how much operating expenses can increase annually. These […]
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