Property Management

What does the term 'gross lease' mean in a commercial property management context?

AThe tenant pays all operating expenses in addition to base rent
BThe landlord pays all operating expenses and tenant pays a fixed rent✓ Correct
CThe lease is based on a percentage of the tenant's gross sales
DThe lease has no fixed term

Explanation

In a gross lease, the landlord pays all property operating expenses (taxes, insurance, maintenance) and the tenant pays a single fixed rent amount. This contrasts with a net lease, where the tenant bears some or all operating costs.

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