What is typically included in a tenant's operating expenses?

Operating expenses for a tenant typically include costs directly associated with the day-to-day operations of a property. Marketing and advertising expenses are considered operating expenses as they are necessary for attracting tenants and generating business. These costs directly contribute to maintaining occupancy levels and ensuring that the property remains competitive in the market.

Property acquisition costs, mortgage payments, and property tax assessments fall outside of the standard operating expenses. Acquisition costs relate to the purchase of the property rather than its ongoing operational expenses. Mortgage payments are financing costs that the property owner incurs and do not typically affect the tenant's expense obligations. Property tax assessments, while they can impact the overall cost of living for a tenant, are usually the responsibility of the property owner, not the tenant, as they pertain to ownership rather than operation. Thus, marketing and advertising expenses are the appropriate choice to represent typical tenant operating expenses.