In a net lease, who pays a portion of the operating expenses?

In a net lease, the tenant is responsible for paying a portion of the operating expenses associated with the property. This type of lease structure is designed to shift some of the financial responsibilities from the landlord to the tenant. Typically, in net leases, the tenant pays base rent along with additional costs such as property taxes, insurance, and maintenance expenses.

This arrangement is common in commercial real estate, where landlords may want to maintain a steady cash flow without being burdened by fluctuating operating costs. Therefore, the correct answer reflects the nature of the net lease, which obligates the tenant to cover these additional expenses, allowing the landlord to focus on the primary income from the rent while passing on some of the operational responsibilities.