Cap on the tenant's share of real-estate-tax escalations.
Leasing · US
Cap on the tenant's share of real-estate-tax escalations.
Negotiated separately from the opex cap. Critical in jurisdictions with rapidly rising real-estate taxes (NYC, San Francisco). Common structure: cumulative compound 5–6% per annum.
Cap on tax pass-through is part of the leasing vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.