gross lease

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gross lease

A lease in which the owner receives the contractual rent out of which he or she must pay all or most of the operating expenses of the real estate.
References in periodicals archive ?
Gross leases also make it easier for tenants to compare rental rates throughout the term of the lease.
Changing to a gross lease format, though, is the first step.
This is also true of office, retail, and industrial properties, which are leased strictly under terms of gross leases.
In mixed-use or multi-tenant properties, an entirely different problem can present itself: Sometimes they are leased up on a mix of net and gross leases.
Seventy-five percent of this income is generated by net leases, and the balance by gross leases.
Since there is a 20% vacancy, and 25% of the occupied space is leased without requiring the tenant to pay any participations - straight gross leases - the appraiser knows that 80,000 square feet in the center generates no recoveries.
But bear in mind that the example showed a 20% vacancy in the center, and that 20% of the tenants refused to pay any participations; they wrote gross leases.
The modified load formula is merely an extension of this procedure to include consideration of gross leases in properties that are leased up on a mix of net and gross leases.
Gross leases can be escalated using many different methodologies.