Legal Definitions - gross lease

A gross lease is a type of commercial lease where the tenant pays a fixed amount of rent periodically to the landlord. This is different from a net lease where the rent varies based on expenses like maintenance, taxes, and insurance.

In a gross lease, the landlord includes all expenses like maintenance fees, taxes, and insurance in the rent calculation. This means that the tenant has a predictable rent amount and is not responsible for any changes in expenses.

For example, if a tenant signs a gross lease for a retail space, they may pay $5,000 per month to the landlord. This amount includes all expenses like property taxes, insurance, and maintenance fees. The tenant does not have to worry about any changes in these expenses during the lease term.

However, some gross leases may include certain expenses like utilities or lawn maintenance, while others may not. Additionally, some gross leases may have a "stop level" where the tenant will pay a higher rent if the landlord incurs expenses above a certain level.

Overall, a gross lease provides a predictable rent amount for the tenant and reduces their liability for changing expenses.