Limit Financial Risk When Granting Tenants an Operating Expense Cap

Death and taxes aren’t the only certainties in life. So are rises in the costs of operating commercial property. That’s why landlords generally require tenants to pay their share of operating expenses. And while most tenants are willing to go along with this arrangement, some might insist on limits, like a cap on increases or the overall pass-through amount. During these troubled times, you may have to agree to this demand, especially if the tenant is big and powerful.

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