A gross lease is a type of commercial lease where the tenant pays a flat rental amount, and the landlord pays for all operating expenses regularly incurred by the ownership, including taxes, electricity and water. Most[weasel words] apartment leases resemble gross leases. The term "gross lease" is distinguished from the term "net lease".
Types of gross leases
Modified Gross (MG)
In a modified gross lease, tenants typically pay a proportional share of operating expenses.
Full-Service Gross (FSG)
In a full service gross lease, outgoings (operating expenses) are paid by the landlord, but are imputed into the price of the lease.
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