Property Management

A gross lease in commercial real estate is one where:

AThe tenant pays base rent plus all operating expenses
BThe landlord pays all operating expenses and the tenant pays a fixed rent✓ Correct
CRent increases based on the tenant's gross sales
DThe tenant pays only utilities

Explanation

In a gross lease, the tenant pays a fixed rent and the landlord is responsible for paying all operating expenses (taxes, insurance, maintenance). This is common in residential rentals and some commercial leases.

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