Types of gross leases Modified Gross (MG) In a modified gross lease, tenants typically pay a proportional share of operating expenses. The Gross lease calls for the Tenant to pay a single, flat rental amount. People will often categorize a lease as either a triple net lease or a full service (gross) lease.The reality is that most lease agreements fall somewhere in the middle of this spectrum where both the landlord and the tenant each pay some share of operating expenses. A gross lease is a lease in which a flat rent fee encompasses rent and all costs associated with ownership, such as taxes, insurance, and utilities. This Lease Agreement (herein “Lease”) is made and entered into this _____ day of _____, by and between the Landlord and Tenant identified in Section 1.1, and constitutes a lease between the parties of the Leased Premises defined in Section 1.1, on the terms and conditions herein set forth. Full service leases are almost exclusively encountered in office buildings. Full Service Gross – In a true full service gross lease the landlord contracts with and pays directly all of the vendors for building services and includes those costs (pro rata share for each tenant) in the base rent that is collected from the tenants without any separate charge (e.g. 3. A Full Service Gross lease entails the landlord paying for everything including utilities. Gross Lease Structures: Full-Service Gross Lease: In a full-service gross lease the tenant pays a fixed rent that takes into consideration the fact that the landlord covers estimated operating expenses such as taxes, insurance, utilities, maintenance and repairs. A Full Service Gross lease entails the landlord paying for everything including utilities. November 5, 2016 February 25, 2017 David Adelstein. These are all terms that are used to describe the manner in which services and expenses are paid in a landlord-tenant relationship. However, there are a number of other lease types that you may see in other markets. A Full Service lease is used most common among the buildings in the higher end of the market such as class A and multi-story buildings. Some of the few exceptions are telephone and data expenses. The Landlord then pays all of his expenses out of this flat rental amount. Assume you are looking at a space that is 1,000 square feet. On paper, full service leases and triple net leases are the complete opposites of each other. Those include common area maintenance, property insurance, utilities, and property taxes. A gross lease is a type of commercial lease in which the tenant pays a flat rental fee. Full Service Lease. full-service gross lease. What are the differences between a net lease, a gross, lease, and a full-service lease? Understanding commercial real estate leases takes careful attention to detail. This is due to the different types of lease structures. The commercial gross lease, sometimes also called a full-service lease, is where the landlord generally agrees to pay all expenses. The most common types of modified gross leases excludes maintenance, janitorial and electrical. which are paid for by the landlord. The full-service lease covers all of the basic expenses that the landlord would normally incur including taxes, insurance, utilities, trash, lawn care, janitorial services, repairs, and maintenance, etc. A typical full service rent will include the base rent, real estate taxes, insurance,CAM, heating, air-conditioning, cleaning, and rubbish removal. The gross lease is similar in many ways to a full service lease, which typically involves the landlord picking up the cost of almost all operating expenses, with the possible exception of telephone and data transmission. In a full-service gross lease, the landlord pays for tax, insurance, utilities, in-suite janitorial, and Common Area Maintenance (CAM).