Question

An industrial lease typically lasts only six months or one year.

Option 1:
A) True

Option 2:
B) False

Answer 1

The claim that industrial leases typically last only six months to one year is false; they are usually more long-term due to the significant investment and need for stability in business operations.

Step-by-step explanation:

The statement that an industrial lease typically lasts only six months or one year is false. Industrial leases are often more long-term arrangements due to the significant investment in infrastructure, equipment, and the need for business stability.

In the context provided, the long run is defined as the period during which all factors are variable. This means a business, like a pizza restaurant, can move to a different location after its lease expires, aligning with its long-term planning. Industrial leases may come with provisions for automatic renewal or require written notice by either party ahead of the termination date.