Property Management

A gross lease in commercial property management means:

AThe tenant pays base rent plus all operating expenses
BThe landlord pays all operating expenses from the rent collected; the tenant pays only base rent✓ Correct
CThe tenant and landlord split all expenses 50/50
DThe rent is calculated as a percentage of the tenant's gross sales

Explanation

Under a gross lease, the tenant pays a single flat rent amount and the landlord is responsible for paying all property operating expenses (taxes, insurance, maintenance) from that rent.

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