Gross-Up Recovery Calculator

Gross-up language lets LL recover variable expenses as if building were at standard occupancy. This calculator sizes the uplift.

Actual variable expenses

Actual occupancy %

Gross-up standard %

Grossed-up expense

$213,750

Gross-up uplift

$33,750

Uplift %

18.7%

How the math works

Grossed-up = actual × (standard ÷ actual occupancy). Recovers as if building at standard occupancy.

Negotiate gross-up into every commercial lease. Modern sophisticated tenants accept 95% standard. Rejecting gross-up is a red flag on tenant's financial strength or counsel's aggressiveness.

How to Use

Enter actual variable expenses.
Enter actual occupancy %.
Enter gross-up standard %.
Read adjusted expense and uplift.

Frequently Asked Questions

Why gross up?

Variable expenses (janitorial, utilities) scale with occupancy. Without gross-up, LL under-recovers at 75% occupancy. Standard protects LL economics.

Typical standard?

95% most common. Some leases 100%. Modern leases specify 'occupancy level the building would have been at if fully operational' — same math as 95%.

Which expenses?

Variable: janitorial, utilities, R&M, landscaping. Fixed: taxes, insurance, depreciation. Fixed expenses don't gross up (they're fixed regardless of occupancy).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.