What Does Full Service Gross Mean?

Many options are available for business space leases.

The overhead costs of rent and the associated utility expenditures are a large investment for a business. Different leases, such as a full service gross agreement, can help the tenant and property owner divide the expenses.

Function

In general, a lease is a contract binding a tenant to a certain time, normally measured in months or years, and for a particular rental rate at the property specified on the document.

Features

A full service gross lease is one where the tenant pays a monthly rental amount and the only other charges above that figure are the specific taxes and individual property insurance. The property owner is then liable for utilities and maintenance, as well as certain other taxes and insurance not covered by the tenant.

Considerations

A full service gross lease is normally used for multi-tenant type office buildings where each tenant is in control of their individual spaces.

References

• Real Tech: Lease Terminology