Property Management (alternative)

In Maryland, a commercial property's 'base year' in an operating expense escalation clause is the year:

AThe building was constructed
BSpecified in the lease against which future operating expense increases are measured for tenant pass-throughs✓ Correct
CThe lease begins in all cases
DThe first major renovation occurred

Explanation

In commercial leases with expense escalation clauses, the base year is the reference year against which future operating expense increases are calculated and passed through to the tenant.

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