Fast answerA lease mechanism that adjusts certain variable operating expenses to a stated occupancy level for allocation purposes.
Why it matters
Without clear limits, the adjustment can change recoveries and distort comparisons between buildings.
What to request
Review which expenses may be grossed up, the assumed occupancy, calculation method and supporting evidence.
Planning example
Ask an adviser to test the calculation against the lease language. The example organizes arithmetic or evidence only; the transaction documents and facts determine the result.
Related decisions
Connect this term to the area, cost, building, flexibility and document provisions elsewhere in the office decision file.
Evidence boundary: office availability and quoted economics change. Confirm current premises, authority, area, costs, permitted use and documents for the specific transaction. Read the methodology.