Property Management

In Michigan, a 'gross lease' for commercial property means:

AThe tenant pays base rent plus all operating expenses
BThe landlord pays most or all operating expenses and the tenant pays a fixed rent✓ Correct
CThe tenant's rent is based on gross revenues
DThe lease covers the entire building regardless of size

Explanation

In a gross lease, the landlord covers most or all operating expenses (taxes, insurance, maintenance) and the tenant pays a fixed (gross) rent. This shifts operating cost risk to the landlord.

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