Which lease type is associated with the highest quoted rent?

Which lease type is associated with the highest quoted rent?

• A. Full Service (FS)
• B. Modified Gross
• C. Net
• D. Gross

Answer: (A)

In this topic, the rent quote reflects who pays operating costs. Full Service bundles most or all operating expenses—property taxes, insurance, CAM, and sometimes utilities—into a single, all-inclusive rent. Because the landlord is covering those costs, the base rent is higher to compensate, so this type typically shows the highest quoted rent. Net leases shift some or all operating costs to the tenant, so the base rent tends to be lower. Modified Gross sits between, splitting some costs. So the highest quoted rent is associated with the Full Service arrangement.

In this topic, the rent quote reflects who pays operating costs. Full Service bundles most or all operating expenses—property taxes, insurance, CAM, and sometimes utilities—into a single, all-inclusive rent. Because the landlord is covering those costs, the base rent is higher to compensate, so this type typically shows the highest quoted rent. Net leases shift some or all operating costs to the tenant, so the base rent tends to be lower. Modified Gross sits between, splitting some costs. So the highest quoted rent is associated with the Full Service arrangement.