Gross Up Calculator

A gross-up clause is a landlord-protective provision that scales variable operating expenses (utilities, janitorial, security) up to what they would have been at a target occupancy — typically 95%. Without it, a partially leased building's per-SF expenses are unfairly diluted because empty space can't be billed. This calculator quantifies the per-SF uplift and the impact on a single tenant's annual reimbursement.

Actual variable opex

Total building SF

Tenant SF

Building occupancy %

Gross-up threshold %

Tenant share (grossed-up)

$21,714

Tenant share (no gross-up)

$16,000

Gross-up uplift to tenant

$5,714

Grossed-up opex / SF

$2.71

Grossed-up opex total

$162,857

Tenant pro-rata %

13.33%

How the math works

Gross-up clauses adjust variable opex (utilities, janitorial) as if the building were ~95% occupied. Without it, a half-empty building's per-SF opex is unfairly diluted because you can't bill empty space. The clause says: scale variable costs to a target occupancy, then divide by total SF for the per-SF charge.

Gross-up applies only to variable expenses. Fixed expenses (insurance, taxes, structural maintenance) don't change with occupancy and are billed at actual.

How to Use

Enter actual variable opex, total SF, tenant SF, and current occupancy.
Enter the gross-up threshold (typically 95%).
Compare grossed-up vs ungrossed tenant share and the uplift created by the clause.

Frequently Asked Questions

Why 95% and not 100%?

A small vacancy buffer (3-5%) is realistic and avoids overstating per-SF cost. 100% gross-up is rare and aggressive.

Tenant view of gross-up?

Tenants negotiate it down — capping gross-up at 90% or excluding utilities. In a tight market, landlords win this clause; in a soft market, tenants do.