Property Valuation
A 'gross lease' used for some Pennsylvania office buildings means the tenant pays:
ABase rent plus all operating expenses
BA single gross rent payment, with the landlord paying all operating expenses from that amount✓ Correct
CRent based on gross sales only
DThe total assessed value of the space annually
Explanation
In a gross lease, the tenant pays one comprehensive rent payment and the landlord pays all operating expenses (taxes, insurance, maintenance, utilities) from that gross amount. The tenant's costs are predictable, but the landlord bears the risk of rising operating expenses.
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