Gross Lease Agreement Template

GROSS LEASE AGREEMENT TEMPLATE FAQ

What is a Gross Lease Agreement?

A Gross Lease Agreement is a commercial lease where the tenant pays a fixed amount of rent, and the landlord pays most or all of the property’s operating expenses, such as property taxes, building insurance, and common area maintenance. Utilities may be included in rent or billed separately, depending on the lease.

How is a gross lease different from a triple net (NNN) lease?

In a gross lease, the landlord typically covers building operating costs and factors those expenses into the rent. In a triple net (NNN) lease, the tenant usually pays base rent plus a share of property taxes, insurance, and operating costs as separate charges. A gross lease is often simpler for tenants because they pay mostly one predictable rent amount.

Who usually uses a commercial gross lease?

Commercial gross leases are common for smaller offices, shared office buildings, certain retail spaces, and professional suites where the landlord manages the property and prefers to bundle building expenses into rent. Tenants often like gross leases when they want predictable monthly costs.

What should a Gross Lease Agreement include?

A clear Gross Lease Agreement should identify the landlord and tenant, describe the premises, set the lease term, specify base rent and what it covers, allocate responsibility for utilities and services, outline maintenance and repair duties, include insurance and indemnity provisions, and provide default and termination rules.

Does a gross lease always include utilities and parking?

Not necessarily. Some gross leases are “full service” and include utilities, cleaning, and parking in the rent. Others are “modified gross,” where certain items (like electricity or janitorial services) are billed separately. The lease should clearly state what is included and what the tenant must pay for separately.

Can AI Lawyer help me customize this Gross Lease Agreement?

Yes. AI Lawyer can help you adapt this Gross Lease Agreement template with your property details, rent structure, utility arrangements, and maintenance responsibilities so you have a clean, organized document ready to review and sign.