CA lease reimbursement for FSG office tenant
I’m analyzing an acquisition with a rent roll consisting of a few office tenants on FSG rent with base years dating back a few years. The current owner has owned the property since the 90s so their tax basis is very low. If we acquire the property, the tax basis will roughly jump 5x.

Because the tenants all have base years prior to 2020, can I assume that most of this tax increase can be passed through? The leases do not have Prop 13 protection as far as I can tell.
[{"id": "fvtn88f", "text": "I would read those leases. Each Individually, to be positive you can pass it all through. I have done deals where savvy tenants/lawyers have requested no properly taxes increases upon a sale for this exact reason. Also, at the time of signing the estoppels, make sure management gives the existing tenants a heads up of what increases may be coming down the road. Trust me, it makes for an easier transition.", "replies": [{"id": "fvtoffc", "text": "He said no prop 13 protection....", "replies": [], "depth": 2}, {"id": "fvuq0bt", "text": "Correct answer here. We see many cases where tenants negotiate a base year of the sale year for this purpose.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fvtodqk", "text": "Yep that\u2019s correct", "replies": [], "depth": 1}, {"id": "fvtpbfv", "text": "Yea you are correct with the exception of there being buried carve outs in the lease for a specific tenant\u2019s lease. However, such a large expense could easily put a small tenant into insolvency, so it\u2019s likely going to become a negotiation.", "replies": [{"id": "fvuhnls", "text": "This. You can pass it on to your tenants and put them all out of business. Not a great plan.", "replies": [], "depth": 2}], "depth": 1}]