Which type of lease is described as having the tenant pay certain operating costs?

In a net lease, the tenant is responsible for not only the base rent but also for certain operating costs associated with the property. These additional costs can include property taxes, insurance, and maintenance expenses. This arrangement is beneficial for landlords as it allows them to receive a more stable income while transferring some of the operational risk and costs to the tenant.

In contrast, a gross lease typically has the landlord cover all operating expenses, meaning the tenant pays a flat amount without extra costs. A percentage lease is primarily associated with retail spaces where rent is based on a percentage of the tenant’s sales, and a fixed lease indicates a set rental amount with no adjustments for costs over time. Therefore, the distinguishing characteristic of a net lease is the alignment of costs shared between the landlord and tenant, making it an appealing arrangement for both parties in a commercial lease context.