ContractsCounsel Logo
Home Types of Contracts Full Service Gross Lease

Jump to Section

A full service gross lease is a commercial real estate lease where the lessee pays a flat rent amount to the lessor. The property owner is accountable for covering all functional expenditures for the rental property.

Full Service Gross Lease Benefits

Below are some primary advantages of a full service gross lease.

  • Cost Predictability

    A full service gross lease provides higher cost predictability for the lessee, as all operating expenditures are incorporated in the rent amount.

  • Clarity

    With a full service gross lease, renters have better clarity of what they will pay each month without stressing about fluctuating utility expenditures or maintenance costs.

  • Set Monthly Rent

    Under a full service gross lease, the monthly rent amount is specified and does not fluctuate based on property upkeep or repairs expense. It provides lessees with predictability and stability in their monthly expenses.

  • No Hidden Costs

    Full service gross leases generally have no hidden costs, as all functional expenditures are accounted for in the rent payment.

  • Minimal Upfront Expenditures

    A full service gross lease generally demands only the first and last months' rental payment and a security deposit instead of a large sum for property renovations or modifications.

  • Access to Amenities

    Multiple full service gross leases present access to amenities like common areas and maintenance and parking assistance. Lessees can enjoy these added advantages without incurring extra costs.

  • Professional Management and Increased Security

    Full service gross leases are handled by experienced property supervisors who manage all property maintenance and repair problems. It frees up resources and time for lessees to focus on their business operations. Moreover, professional property management also increases the property's overall security and safety.

Full Service Gross Lease Drawbacks

Below are some drawbacks of entering a full service commercial lease.

  • No Opportunity to Lower Operating Costs

    Lessees cannot negotiate operating expenditures or take measures to reduce them, as the owner is accountable for covering those expenditures.

  • Restricted Control over Operating Expenditures

    Since the lessor is accountable for covering all working expenditures, lessees have restricted control over how those expenditures are controlled.

  • Higher Rent

    Lessees can expect to pay a higher building rent with a full service gross lease, as the landlord covers all operating expenses.

Meet some lawyers on our platform

Bryan B.

262 projects on CC
CC verified
View Profile

Zachary J.

363 projects on CC
CC verified
View Profile

Maria A.

3 projects on CC
CC verified
View Profile

Forest H.

219 projects on CC
CC verified
View Profile

Full Service Gross Lease Tips

Below are some key points you must consider when negotiating a full service gross lease.

  • Rent Amount

    The rent payment is the primary item to be negotiated in a full service gross lease. Lessees should evaluate the cost of operating expenditures when negotiating rent, as these expenses are incorporated in the rent amount.

  • Duration of Lease

    The lease term is another essential factor to contemplate when negotiating a full service gross lease. While a more extended lease duration can provide cost predictability and stability, a shorter lease duration may allow for more flexibility.

  • Renewal Alternatives

    Lessees should also assess negotiating renewal alternatives into the lease agreement if they wish to extend their lease at the end of the original term.

  • Tenant Improvements

    Tenants may negotiate for tenant improvements to be made to the property, such as new lighting or HVAC systems, to be included in the lease agreement.

Landlord Obligations in a Full Service Gross Lease

Some of the key obligations of a landlord in a full service gross lease are as follows:

  • Repairs and Maintenance

    The landlord is accountable for the maintenance and repair of the rental property, including fixing any issues that may occur during the lease term.

  • Rent Payment

    The lessee is accountable for paying a predetermined monthly rent, including all the lessor's services.

  • Building Maintenance

    The lessor is liable for maintaining the common places of the rental property, such as the hallways, elevators, and lobby.

  • Utilities

    The owner is accountable for settling for all the utility expenses, including electricity, water, gas, and internet/telephone.

  • Insurance

    The property owner is accountable for obtaining and holding property insurance coverage, which protects against impairment or loss caused by theft, fire, or other perils.

  • Janitorial Services

    The lessor is answerable for providing janitorial assistance, including cleaning the common spaces of the building and the leased area.

  • Taxes

    The landlord is liable for settling all the property taxes associated with the rental property.

Types of Full Service Gross Leases

In a full service Gross Lease, the lessee is liable only for settling the monthly rent, and the lessor takes all other expenditures and assistance. This type of commercial lease is suitable for tenants who do not have the funds or manpower to handle the maintenance and repair of the property. Below are some common types of the full service gross lease.

  • Triple Net Lease

    NNN or triple net lease is a full service gross lease in which the tenant bears all operating expenditures, including insurance, property taxes, and common area maintenance.

  • Base Rent Lease

    In this full service gross lease, the tenant settles a specified monthly rent to the lessor, which incorporates all basic services like heating, electricity, water, maintenance, and property taxes.

  • Adjusted Gross Lease

    This full service gross lease incorporates a base rent plus an extra monthly charge for water, electricity, and maintenance assistance. The landlord is accountable for insurance, property taxes, and capital improvements.

  • Gross Lease with Base Year

    This full service gross lease includes a base rent adjusted annually based on changes in operating expenses such as property taxes, insurance, and common area maintenance. The landlord is typically responsible for paying all operating expenses, but the tenant is responsible for any increases above the base year.

  • Full Service Gross Lease with CAM (Common Area Maintenance)

    This type of full service gross lease comprises a base rent and a monthly expense for common area maintenance (CAM) expenditures, such as cleaning, landscaping, and snow removal. The lessor is typically liable for insurance and property taxes.

  • Gross Lease with Escalation Clauses

    This full service gross lease contains a base rental payment that increases yearly based on a predetermined procedure. The owner is generally accountable for all operating expenditures, including insurance and taxes.

Key Terms

  • Operating Expenses: The expenditures incurred by the owner to operate and maintain the building, such as insurance, property taxes, maintenance, and utilities.
  • Utilities: The assistance required to run the building, such as water, electricity, and gas.
  • Rent: The amount of money settled by the lessee to the owner in exchange for the use of the rental property.
  • Tenant Improvements: Any changes or upgrades made to the rental property by the owner to adjust the tenant's specific requirements.

Conclusion

To summarize, a full service gross lease can be suitable for lessees who value cost predictability. Nevertheless, evaluating the higher rent amount and limited power over operating expenditures is important before entering this lease agreement.

If you are looking to get free pricing proposals from vetted lawyers that are 60% less than typical law firms, you can Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Need help with a Full Service Gross Lease?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 10,987 reviews

Meet some of our Full Service Gross Lease Lawyers

Samuel R. on ContractsCounsel
View Samuel
5.0 (42)
Member Since:
October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
5 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the 2024 Super Lawyers Southwest Rising Stars list. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Mathew K. on ContractsCounsel
View Mathew
5.0 (2)
Member Since:
February 1, 2022

Mathew K.

Founding Attorney
Free Consultation
Illinois
9 Yrs Experience
Licensed in IL
DePaul University College of Law

Kerbis' practice includes business and real estate transactions, estate planning, and limited scope litigation consulting. Mathew has negotiated deals involving multinational corporate franchises and has collectively helped hundreds of clients with their transactional, civil litigation, and appellate legal needs. Throughout his tenure as an American Bar Association leader, Mathew has advocated for legal education reform, interviewed ABA Presidents and State Appellate and Supreme Court Justices, and lobbied Congress on behalf of the legal profession. As a law student, Mathew served as an extern for the Honorable Justice Robert E. Gordon of the Illinois Appellate Court, First District.

Anand A. on ContractsCounsel
View Anand
5.0 (39)
Member Since:
July 17, 2022

Anand A.

Counsel
Free Consultation
Philadelphia, PA
10 Yrs Experience
Licensed in NJ, PA
Rutgers University School of Law

Anand is an entrepreneur and attorney with a wide-ranging background. In his legal capacity, Anand has represented parties in (i) commercial finance, (ii) corporate, and (iii) real estate matters throughout the country, including New Jersey, Pennsylvania, Delaware, Arizona, and Georgia. He is well-versed in business formation and management, reviewing and negotiating contracts, advising clients on financing strategy, and various other arenas in which individuals and businesses commonly find themselves. As an entrepreneur, Anand is involved in the hospitality industry and commercial real estate. His approach to the legal practice is to treat clients fairly and provide the highest quality representation possible. Anand received his law degree from Rutgers University School of Law in 2013 and his Bachelor of Business Administration from Pace University, Lubin School of Business in 2007.

Janice K. on ContractsCounsel
View Janice
5.0 (4)
Member Since:
August 30, 2023

Janice K.

Counselor
Free Consultation
Washington
22 Yrs Experience
Licensed in CA, WA
Empire College School of Law, Santa Rosa, CA

Twenty-plus years experience in family law, employment law, public agency law, federal, state and local contracts drafting and review, appellate practice.

Joe C. on ContractsCounsel
View Joe
Member Since:
August 30, 2023

Joe C.

Associate Attorney
Free Consultation
Dallas, Texas
4 Yrs Experience
Licensed in TX
SMU Dedman School of Law

Born in Dallas, Texas, Joe Craddock represents clients in a range of litigation and transactional matters covering Contracts, Real Property, Oil and Gas, and Construction Defects.

Massa M. on ContractsCounsel
View Massa
Member Since:
August 30, 2023

Massa M.

Attorney
Free Consultation
Maryland
3 Yrs Experience
Licensed in MA, MD
Massachusetts School of Law

Highly disciplined attorney with over seven years administrative litigation experience. Capable of analyzing complex research, data, and documentation to prepare and represent individuals in sensitive cases. Recognized as a leader with the ability to perform work both autonomously and collaboratively as a member of a diverse legal team. Great problem-solving skills, strong multitasking capabilities and works well under strict deadlines. A professional with a sense of humor, strong work ethic and ability to build trust across all levels.

Jessica I. on ContractsCounsel
View Jessica
Member Since:
August 31, 2023

Jessica I.

Attorney
Free Consultation
Saint Paul, Minnesota
6 Yrs Experience
Licensed in MN
Mitchell Hamline School of Law

Jess has been practicing law since 2018, but she's been in the business world far longer. Prior to law school, she gained valuable experiences managing in both retail and service industries. As an attorney, she combines practical real-world know-how with a deep understanding of the law. Learn more at www.voyagerlawmn.com

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Full Service Gross Lease?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 10,987 reviews
Real Estate lawyers by top cities
See All Real Estate Lawyers
Full Service Gross Lease lawyers by city
See All Full Service Gross Lease Lawyers

ContractsCounsel User

Recent Project:
George Walker
Location: Florida
Turnaround: Less than a week
Service: Contract Review
Doc Type: Commercial Lease
Page Count: 15
Number of Bids: 4
Bid Range: $350 - $2,950

ContractsCounsel User

Recent Project:
Commercial Lease Review
Location: New Jersey
Turnaround: Less than a week
Service: Contract Review
Doc Type: Commercial Lease
Page Count: 8
Number of Bids: 6
Bid Range: $150 - $800

Need help with a Full Service Gross Lease?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 10,987 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city