Which type of lease requires the tenant to pay specified operating expenses?

A net lease is a type of lease where the tenant agrees to pay not only the rent but also specified operating expenses associated with the property. These operating expenses can include property taxes, insurance, maintenance costs, and utilities, depending on the specifics of the lease agreement.

In a net lease, the property owner typically receives a base rent, and the tenant takes on additional financial responsibilities, which can vary widely based on the terms of the lease. This arrangement is common in commercial real estate, where landlords may seek to minimize their risk by shifting some of the costs of property management to the tenant.

The other lease types mentioned typically do not involve this arrangement. A gross lease includes all operating expenses in the rent, while graduated and step-up leases refer to rent increases over time without the specific cost-sharing structure inherent in a net lease.