Property Management

In New York, 'base rent' in a commercial lease is the:

ARent charged after accounting for all concessions and abatements
BThe fixed minimum rent specified in the lease, exclusive of additional rent (taxes, insurance, operating expenses) in a net lease✓ Correct
CThe rent based on a percentage of the tenant's gross sales
DThe rent set by the Rent Guidelines Board

Explanation

In a commercial net lease in New York, the 'base rent' (or 'minimum rent') is the fixed monthly amount specified in the lease, exclusive of any additional rent the tenant pays for their proportionate share of operating expenses, real estate taxes, and insurance. The total rent paid equals base rent plus additional rent.

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