Gross Lease / Full Service Lease

In a gross lease, the landlord pays all the operating costs. These expenses can include, but aren’t limited to, property taxes, utilities, maintenance, etc. The landlord pays these expenses using the tenant’s rent to offset the costs. As a result, the base rent is typically relatively high, but is the only cost to the tenant.

Many landlords include some variable cost flexibility in the lease by adding “escalation clauses” that account for an increase of insurance or taxes. They can also include language that allows them to temporarily increase your rent based on variable costs.

Net Lease

The tenant pays all the operating costs. The base rent for a net lease is lower than a gross lease, but the tenant also pays fixed operating expenses such as property taxes, insurance, and common area maintenance (CAM) items.

Do you have a question for one of our experts? Contact our office by calling (251) 476-0808, or reach out to one of our brokers below.

MERRILL THOMAS

Managing Broker
merrill@merrillpthomasco.com
251-401-5240

PRATT  THOMAS

Agent / Broker
pratt@merrillpthomasco.com
251-367-8358

JOHN DELCHAMPS

Agent / Broker
john@merrillpthomasco.com
251-604-0615

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