Property Management
A 'gross-up' provision in a commercial lease allows the landlord to:
AIncrease rents arbitrarily
BCalculate operating expenses as if the building is fully occupied to ensure full expense recovery✓ Correct
CAdd uncapped expenses to tenant billings
DGross up the tenant's income for credit evaluation
Explanation
A gross-up provision allows the landlord to calculate variable operating expenses (like utilities) at a hypothetical 95-100% occupancy level, ensuring fair cost allocation even when the building is not fully occupied.
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