Adjusts opex as if the building were 95–100% occupied.

  • Adjusts opex as if the building were 95–100% occupied.
  • Without gross-up, a half-empty building shows artificially low opex in the base year, then a sharp increase as occupancy rises.

Gross-up provision

Leasing · US

Short definition

Adjusts opex as if the building were 95–100% occupied.

Full definition

Without gross-up, a half-empty building shows artificially low opex in the base year, then a sharp increase as occupancy rises. Always insist on gross-up at 95–100% in the base year for variable expenses (cleaning, utilities, repairs).

Why this matters for Class A leasing

Gross-up provision is part of the leasing vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.

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