Property Management
What is the difference between a gross lease and a net lease in commercial property management?
AA gross lease requires the landlord to pay operating expenses; a net lease requires the tenant to pay some or all operating expenses✓ Correct
BA gross lease has higher base rent; a net lease has lower rent
CA gross lease is for retail; a net lease is for office space
DThey are the same type of lease
Explanation
Under a gross lease, the landlord pays most operating expenses (taxes, insurance, maintenance) and charges the tenant a single inclusive rent. Under a net lease, the tenant pays some or all operating expenses in addition to base rent (single net = taxes; double net = taxes + insurance; triple net = taxes + insurance + maintenance).
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