Glossary of Terms

Expense Stops 2018-11-16 08:00:00

Expense Stops

As stated in a commercial lease, an expense stop marks 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.