Base Year Stop Reset Calculator

Base year resets on renewal uplift OpEx burden.

Old base year OpEx PSF

New base year OpEx PSF

Tenant pro-rata %

Annual uplift to tenant

$48,000

Uplift PSF

$6.00

Landlord burden shifted

$5,760

How the math works

Uplift PSF = new − old. Annual = uplift × SF. Landlord shift = annual × pro-rata.

$24 − $18 = $6 PSF uplift × 8k SF = $48k/yr. × 12% pro-rata = $5.76k shifted to tenant.

How to Use

Enter old base year OpEx PSF.
Enter new base year OpEx PSF.
Enter tenant pro-rata %.
Enter SF.
Read annual reset uplift.

Frequently Asked Questions

Why reset?

Base year tied to a specific year's expenses. At lease renewal, base resets to current year. Tenant now pays pro-rata of expenses above new (higher) base. Uplift = landlord's share of expense growth during lease shifted to tenant at renewal.

Typical uplift?

10-year lease with 3% annual expense growth: old base = expenses year 1. New base = expenses year 11, ~34% higher. On $20 PSF base: new base = $27 PSF. Reset shifts $7 PSF burden from landlord to tenant annually going forward.

Negotiation?

Tenant wants fixed stop (lower than fair base year). Landlord wants fresh base year at renewal. Compromise: capped expense growth above old base. Or smaller stop reset (e.g., 75% of actual). Key negotiation at renewal — can worth $10-50k/yr on mid-size space.