Property Management

In Connecticut commercial leasing, a 'base year' lease typically means:

AThe lease starts in January of every year
BOperating expense increases above the base year amount are passed through to the tenant✓ Correct
CThe tenant pays no operating expenses in the first year
DThe rent is fixed for the base year only

Explanation

In a base year lease, the landlord covers operating expenses up to the base year amount. Any increases in operating expenses above the base year level are passed through to the tenant, protecting the landlord from expense inflation.

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