Base Year Stop Reimbursement Structures Explained

Breaking Down The Base Year Stop In Real Estate

In commercial real estate investing, often you’ll have expense reimbursement clauses in a lease which call for the tenant to reimburse the landlord for operating expenses associated with the property. These are usually relatively easy and straight-forward to calculate, but the base year stop calculation is trickier and a little more complex than the rest.

So in this video, we’re going to break down what the base year stop in real estate is, how to calculate the base year stop, and when you might see the base year stop expense reimbursement used in commercial real estate.