Property Management

A 'cap' on operating expense increases in a commercial lease (expense stop) protects the:

ALandlord from unlimited expense responsibility
BTenant from unlimited increases in their operating expense obligations above the stop amount✓ Correct
CMunicipality from unpaid property taxes
DLender from property value declines

Explanation

An expense stop sets a base level of operating expenses; the tenant pays only increases above the stop. A cap limits how much of those increases the tenant must absorb, protecting tenants from uncapped expense escalation.

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