how a gross lease works
a lease is a contract between a lessor or property owner and a lessee or tenant this contract is often written and gives the tenant exclusive use of the property for a certain period of time the tenant agrees to pay the owner a fixed sum of money on a regular basis whether that s weekly monthly or annually 3a gross lease is a type of lease that allows the tenant to use the property exclusively by paying a flat fee it is commonly used for rentals in commercial property such as office buildings and retail spaces that have numerous lessees fees or rents are calculated by landlords to reasonably cover the operating costs of these spaces 4 these expenses include this rent calculation may be done through analysis or from historical property data the landlord and tenant can also negotiate the amount and terms of the lease for example a tenant may ask the landlord to include janitorial or landscaping services 5gross leases allow tenants to precisely budget their expenses these leases are especially beneficial for those with limited resources or businesses that want to minimize variable costs to maximize profit 5 companies can concentrate on growing their business without the complexities associated with net leases 