Question

You are interested in buying a property that has Starbucks as the major lessee. The Starbucks lease has a current term of 15 years. The current lease is a net lease. This means that the landlord pays all taxes associated with the property and Starbucks only pays the rent.
a. True
b. False

Answer 1

Answer:

b. False

Explanation:

This is a commercial real estate lesse. (Starbucks uses the property for commercial use is not a family living their lives in there)

Which means the lesse is net. the tenant pay rent and the taxes, insurance and maintenance of the property.

So Starbuck is paying the rant and the taxes as well. This statement is FALSE.