Contracts

Under Massachusetts law, a commercial lease's 'operating expense exclusions' typically include which of the following?

ARoutine maintenance and cleaning
BCapital expenditures, management fees above market rate, and costs of leasing space to new tenants✓ Correct
CUtilities consumed by all tenants
DProperty insurance premiums

Explanation

Net lease operating expense provisions typically exclude certain landlord costs from tenant reimbursement, including capital expenditures, excessive management fees, leasing commissions, and costs related to specific tenants or the landlord's management of the building.

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