What Is a Gross Lease?
A gross lease is a lease where the landlord agrees to be responsible for all expenses which are normally associated with ownership of the leased premises, such as maintenance (includes utilities and repairs), insurance, and taxes. A tenant to a gross lease is only responsible for paying the monthly lump sum base rent and the landlord is responsible for operating the building and all other costs associated with the premises. The tenant¿s base rent usually includes the building operating costs. Today, a gross lease is very rare.What Is a Modified Gross Lease?
A modified gross lease is really a net lease disguised as a gross lease. Under a modified gross lease, the tenant is responsible for paying the monthly lump sum base rent and the landlord is responsible for operating the building and all other costs associated with the premises. The modified gross lease usually passes any increases in operating costs to the tenant by way of a pass through provision such as an operating expense escalation clause. Do I Need a Real Estate Attorney Before Signing My Commercial Lease?
Commercial leases are very complex agreements with every provision open for negotiation. A real estate attorney will be able to inform you of whether a gross lease, a net lease or some type of hybrid is best for your business needs. A real estate attorney will also protect your interests when negotiating your commercial lease to ensure that the lease is the best lease possible for your business needs. |
 |
