Gross Commercial Real-Estate Lease Agreement
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A Gross Commercial Real-Estate Lease Agreement is a commercial lease agreement where the lease tenant pays a fixed rental amount, and the landlord is responsible for all operating expenses (including property taxes, insurance, and maintenance costs).
- Context:
- It can provide simplicity for both the tenant and the landlord by having a fixed rental amount and the landlord taking care of the property expenses.
- It can be beneficial for tenants who want to have predictable costs without the fluctuations of operating expenses.
- It can be disadvantageous for landlords if the operating expenses significantly increase, as they will be responsible for covering those costs.
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- Example(s):
- A Gross Retail Store Lease Agreement, where the tenant pays a fixed monthly rent, and the landlord covers expenses like common area maintenance and property taxes.
- A Gross Office Lease Agreement, where the tenant pays a fixed annual rent, and the landlord is responsible for utilities, property management fees, and insurance.
- A Gross Industrial Facility Lease Agreement, where ...
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- Counter-Example(s):
- A Modified Gross Commercial Lease Agreement, ...
- A Net Lease Agreement, where the tenant is responsible for a portion or all of the operating expenses in addition to the base rent.
- A Percentage Lease Agreement, where the tenant pays a percentage of their sales revenue in addition to the base rent.
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- See: Lease Agreement, Commercial Real Estate.