Property Management

What is the primary difference between a gross lease and a net lease in Iowa commercial real estate?

AA gross lease includes all expenses in the rent; a net lease requires the tenant to pay some operating expenses separately✓ Correct
BA gross lease is only for retail; net lease is for office
CA net lease is shorter in duration than a gross lease
DA gross lease is only permitted for government tenants

Explanation

In a gross lease, the tenant pays a fixed rent and the landlord pays operating expenses. In a net lease, the tenant pays base rent plus some or all operating expenses (taxes, insurance, maintenance).

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