gross up


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gross up

To artificially increase operating expenses in a project for accounting purposes in order to calculate each tenant's pro rata share of those expenses. Most commercial leases provide that actual operating expenses will be increased—grossed up—to what they would be if the project were 95 percent leased.That figure is then divided among the tenants according to their pro rata share of expenses,as determined by their pro rata share of leased space.

References in periodicals archive ?
Buyers have a moral imperative in negotiating reduced CIC protection at its targets if the buyers themselves have made some of the difficult changes, such as double triggers, reduced 280G gross up, and limited walk away rights.
Almost two-thirds (65%) of responding companies would gross up CIC payments to cover tax penalties one or more executives would face if their CIC payments exceeded the Internal Revenue Code's limit of three-times final average pay.
These practices include golden parachutes, multiyear guaranteed contracts, overgenerous severance arrangements, golden coffins, poison pills, staggered boards, and gross ups.