How are office lease rents adjusted vs industrial and retail lease rents?

Gross Up/Net Down Process

The gross-up process is designed to adjust the net lease rate's starting rent to a gross rate level using the formula below. It's applied only in office leases, and the same formula is applicable for both Starting Rent and Effective Rent.

GrossUpRent = Rent * (1 + AdjustmentRate)

The net-down process is meant to achieve the opposite effect. In the industrial sector, net leases are the most commonly used OpEx reimbursement structure. CompStak uses the formula below to calculate Adjusted Rent for industrial and retail leases, applicable for both Starting and Effective Rents.

NetDownRent = Rent / (1 + AdjustmentRate)

Currently, no adjustments are applied to leases other than Office, Industrial or Retail leases.