Property Management

What is 'operating expense stop' in a Rhode Island commercial lease?

AA cap on the tenant's rent
BA threshold above which the tenant is responsible for paying increases in operating expenses; the landlord bears costs up to the stop amount✓ Correct
CA provision stopping all operating expenses for the first year
DA clause limiting the landlord's maintenance obligations

Explanation

An operating expense stop is the dollar amount below which the landlord pays all operating expenses. For expenses exceeding this amount, the tenant pays their proportionate share of the increase. It is a hybrid between a gross lease and a net lease.

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