What Are Some Perks of a Full Service Lease?


Quick Answer

A full service lease, also called a gross lease, allows a tenant to more accurately forecast expenses, according to 42 Floors. It is a type of commercial lease in which the landlord pays all of the expenses associated with the property, such as taxes, insurance, maintenance, utilities and janitorial services.

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Full Answer

Two types of commercial leases are net and gross, which are defined based on how the rent is calculated pursuant to the lease, explains 42 Floors. Landlords pay all of the expenses in exchange for rent under a gross lease, while under a net lease, tenants pay most of the expenses. Under a modified gross lease, tenants pay more of the expenses than under a gross lease, but less than under a net lease. Base rental rates tend to be higher under gross leases.

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