A recent trend in commercial leases is for tenants to negotiate a cap on the amount of certain operating expenses they are required to reimburse the landlord. Such caps are usually negotiated on operating expenses thought to be at least partially controllable by the owner. Which of the following would typically be considered an operating expense controllable by the owner?

Question

Quizplus · Accepted Answer

General maintenance is typically considered a controllable operating expense because the owner can manage and control the costs associated with maintaining the property.

A Recent Trend in Commercial Leases Is for Tenants to Negotiate