What are passthrough provisions in commercial real estate typically responsible for covering?

Passthrough provisions in commercial real estate are primarily designed to allocate certain operating expenses directly to tenants beyond the base rent they pay. This mechanism typically covers costs associated with property taxes, insurance, and maintenance.

When a tenant leases space in a commercial property, the landlord often incurs expenses that are a direct result of maintaining the property and ensuring compliance with various regulations. By incorporating passthrough provisions in lease agreements, landlords can pass these operational costs onto the tenants, thus protecting themselves from fluctuating expenses. This approach helps maintain stable rental income for the landlord while providing tenants with a transparent understanding of the full cost of their occupancy.

In this context, the other options do not accurately reflect what passthrough provisions typically cover in commercial real estate, as they involve either costs not generally included in such provisions or costs that are typically absorbed by the landlord.