gross lease

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Gross lease

A type of property lease in which the lessor (owner of the property being leased) pays expenses associated with ownership such as damages, taxes, and insurance.

Gross Lease

A lease in which the lessee pays the lessor (the property owner) a flat fee at agreed upon intervals (usually once per month), and, in exchange, the lessor is responsible for all maintenance and other expenses associated with the property. Most rental agreements on residences are gross leases. See also: Net lease.

gross lease

A lease in which the costs of maintaining the leased asset, including its insurance and taxes, are paid by the lessor. Compare net lease.

gross lease

A lease for a set amount of rent each month,with the landlord paying all expenses of the property and its management. It is the typical form of lease for residential properties. Contrast with a net lease in which the tenants reimburse the landlord for some or all of the expenses of ownership and management.(Net leases are common in commercial transactions.)

References in periodicals archive ?
Gross leases also make it easier for tenants to compare rental rates throughout the term of the lease.
Changing to a gross lease format, though, is the first step.
This is also true of office, retail, and industrial properties, which are leased strictly under terms of gross leases.
In mixed-use or multi-tenant properties, an entirely different problem can present itself: Sometimes they are leased up on a mix of net and gross leases.
Seventy-five percent of this income is generated by net leases, and the balance by gross leases.
Since there is a 20% vacancy, and 25% of the occupied space is leased without requiring the tenant to pay any participations - straight gross leases - the appraiser knows that 80,000 square feet in the center generates no recoveries.
But bear in mind that the example showed a 20% vacancy in the center, and that 20% of the tenants refused to pay any participations; they wrote gross leases.
The modified load formula is merely an extension of this procedure to include consideration of gross leases in properties that are leased up on a mix of net and gross leases.
There are two primary types of leases when it comes to a discussion of escalations: Net leases, in which the tenant is responsible for all operating and some or all capital costs; and Gross leases, in which the tenant is only responsible for increases in operating expenses above some predetermined base.
Gross leases can be escalated using many different methodologies.