A triple net lease shifts more cost uncertainty to a tenant than a gross lease True...

Question

Question

A triple net lease shifts more cost uncertainty to a tenant than a gross lease True False

business economics

Answer 1

Answer #1

In case of gross lease, tenant pays only a fixed amount as rent and all the operating expenses with respect to building is paid by the landlord.

In case of triple net lease, tenant pays the rent as well as all the operating expenses with respect to building.

Thus, amount to be paid by the tenant is more certain under gross lease rather than under the triple net lease.

So,

A triple net lease shifts more cost uncertainty to a tenant than a gross lease.

Hence, the given statement is True.

Answer 2

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