The correct choice reflects a lease arrangement in which the tenant assumes the typical obligations associated with a triple net lease—covering property taxes, insurance, and maintenance—while also being responsible for certain structural maintenance tasks. This combination of responsibilities means that the tenant is not only managing operational costs but also engaged in maintaining the property’s structure, which can include significant repairs or renovations.
In this type of lease, the landlord typically has limited obligations, further solidifying the tenant's financial accountability for both routine and more substantial structural aspects of the property. This structure benefits landlords by providing them with a steady income while shifting significant maintenance responsibilities to the tenant. It is especially common in commercial real estate where tenants want more control and an incentive to maintain the property efficiently.
Understanding this distinction helps clarify why this lease type is particularly advantageous for landlords seeking to minimize their operational involvement while ensuring that tenants have a vested interest in maintaining the property’s real value.