Property Management
Under Massachusetts law, a commercial tenant in a 'gross lease' has limited exposure to operating expense increases because:
AThe tenant pays a percentage of all operating costs
BThe landlord bears the operating expenses and the tenant pays only the agreed base rent✓ Correct
CThe lease has a built-in operating expense cap
DCommercial leases are exempt from expense increases
Explanation
In a gross lease, the landlord pays all (or most) operating expenses out of the rent received. The tenant pays a fixed base rent, so they are shielded from unexpected increases in taxes, insurance, or maintenance costs.
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