For which party is an expense stop clause in a lease advantageous?

An expense stop clause is advantageous for the lessor, as it sets a limit on the amount of operating expenses that the lessor is responsible for covering. Essentially, the clause specifies a threshold or "stop" for expenses, above which the lessee must pay the additional costs. This arrangement protects the lessor from the risk of rising property expenses, ensuring that they can predict and manage their financial obligations more effectively.

By having an expense stop clause, the lessor can maintain better control over operating costs and pass any excess expenses onto the lessee. This makes leasing arrangements more favorable for the lessor, as they are less likely to incur unexpected costs associated with property management, resulting from increases in maintenance, utilities, or repairs.