Property Management

A gross lease in commercial real estate means:

AThe tenant pays all property expenses
BThe landlord pays all property operating expenses included in one gross rent payment✓ Correct
CRent is calculated as a percentage of gross sales
DThe lease is for a gross building (before any tenant improvements)

Explanation

In a gross lease, the tenant pays one gross rent amount, and the landlord pays all operating expenses (taxes, insurance, maintenance). This is simpler for tenants but may result in higher base rent to compensate the landlord for operating costs.

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