Glossary of Terms

Expense Stops 2019-06-04 08:00:00

Expense Stops

Expense stops, as stated in a commercial lease, mark the extent of operating expenses and taxes a landlord will be responsible for on a tenant-filled property. All expenses past this threshold will be held liable by the active tenant.

Expense stops are practiced by landlords in order to limit their expense liability on their property. By creating more predictable expenses over the life of the asset, the landlord is reducing the risk on their expected cash flow in future years.