Gross Lease

Definition

A commercial lease where the landlord pays most operating expenses, with the tenant paying a fixed rent—the landlord's optimistic version of budgeting.

Example Usage

The gross lease included utilities and maintenance in the $5,000 monthly rent.

Origin

Commercial real estate lease terminology from the mid-1900s

Fun Fact

Gross leases look great until the landlord discovers that maintaining 100,000 SF costs more than anticipated.

Source: SIOR (Society of Industrial Office and Real Estate Developers) Standards

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