What expenses does a net-net lease require the tenant to cover?

In a net-net lease, the tenant is responsible for base rent along with two specific types of expenses: property taxes and insurance. This arrangement typically means that the landlord retains responsibility for structural repairs, while the tenant covers other operating costs. Therefore, the answer indicating that the tenant pays base rent plus all operating expenses, excluding property tax and structural repairs, accurately reflects the standard obligations under a net-net lease.

This understanding is crucial because it highlights the shift of some financial responsibilities from the landlord to the tenant, allowing for clearer budgeting and expense management for both parties involved in the lease agreement. The tenant benefits by having control over certain operating expenses, while the landlord may enjoy reduced financial risk.