1. A benefit of a gross lease is that it is easy for the tenant to forecast expenses related to the use of the property.

True

False

2. A gross lease is always preferable to a triple net lease.

True

False

3. A tenant should carefully negotiate with the landlord the terms of a net lease before signing the lease.

True

False

4. A tenant who signs a triple net lease will pay three times for the space than a tenant who signs a single net lease for the same space.

True

False

5. A triple net lease shifts more cost uncertainty to a tenant than a gross lease.

True

False

6. Commercial properties with stable tenants should have lower cap rates than if these same buildings had very risk tenants. A risky tenant is one who is likely to default on lease payments.

True

False