Property Management
What is a 'gross lease' in Delaware commercial real estate?
AA lease requiring tenant to pay all property operating expenses
BA lease where the landlord pays most expenses from the rent received, and the tenant pays only a fixed rent✓ Correct
CA lease with a gross rent adjustment clause tied to inflation
DA lease where rent includes utilities but not taxes
Explanation
In a gross lease, the landlord bears most operating expenses (taxes, insurance, maintenance) out of the total rent received. The tenant pays a fixed all-inclusive rent, making budgeting predictable.
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