Gross Lease | Practical Law

Gross Lease | Practical Law

Gross Lease

Gross Lease

Practical Law Glossary Item 8-503-9140 (Approx. 3 pages)

Glossary

Gross Lease

A type of real estate lease where the tenant pays rent to the landlord as a gross amount. The tenant is not required to pay additional rent to the landlord to cover expenses related to the leased premises. The landlord pays all the property-related expenses. Typical expenses include:
  • Real estate taxes.
  • Insurance.
  • Maintenance charges.
These expenses are factored into the base rent amount that the tenant must pay.
Gross leases that include escalation clauses are known as modified gross leases.