Which lease structure results in the highest quoted rent?

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Multiple Choice

Which lease structure results in the highest quoted rent?

Explanation:
In a Full Service lease, the landlord pays most or all operating costs (maintenance, taxes, insurance, utilities, etc.), so the rent is quoted as an all-in amount to cover those expenses. To ensure the property’s operating costs are covered, the base rent tends to be higher. In contrast, a Net lease shifts those costs to the tenant (base rent can be lower because taxes, insurance, and CAM are paid separately), and a Modified Gross splits some costs between landlord and tenant, placing its base rent between the two. Therefore, the all-in Full Service structure normally yields the highest quoted rent.

In a Full Service lease, the landlord pays most or all operating costs (maintenance, taxes, insurance, utilities, etc.), so the rent is quoted as an all-in amount to cover those expenses. To ensure the property’s operating costs are covered, the base rent tends to be higher. In contrast, a Net lease shifts those costs to the tenant (base rent can be lower because taxes, insurance, and CAM are paid separately), and a Modified Gross splits some costs between landlord and tenant, placing its base rent between the two. Therefore, the all-in Full Service structure normally yields the highest quoted rent.

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