Property Management
What is 'proportionate share' in a Delaware commercial building with multiple tenants?
AThe proportion of rent each tenant pays
BEach tenant's allocated percentage of common area maintenance, operating expenses, and taxes based on their occupied square footage relative to the building's total leasable area✓ Correct
CThe proportionate share of the building's market value attributed to each tenant
DA tenant's share of the building's gross revenue
Explanation
Proportionate share (pro-rata share) allocates common expenses among tenants based on each tenant's leased square footage as a percentage of the building's total net rentable area. It is used to calculate CAM charges, tax, and insurance reimbursements in multi-tenant buildings.
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