Property Management

In New York, a commercial tenant on a 'gross lease' pays:

ABase rent plus all operating expenses of the building
BA fixed monthly rent that includes all or most operating expenses (the landlord pays operating costs out of the gross rent received)✓ Correct
CBase rent plus a percentage of sales
DOnly a percentage of the building's gross income

Explanation

In a gross lease (also called a full-service lease), the tenant pays a fixed monthly rent that covers all or most building operating expenses (utilities, taxes, insurance, maintenance). The landlord receives the gross rent and pays operating expenses from it. This contrasts with net leases, where the tenant pays base rent plus specific operating expenses.

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