What does gross lease value mean?

In reference to a commercial lease agreement
In Leasing Property - Asked by Robert P. - Dec 11, 2008
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Answer(s)

David L.
Appraiser
Scottsdale, AZ

A "Gross" lease describes the lease rate that the tenant pays. In this situation, the tenant pays a single rental rate to the property owner, and included in that rental rate is all of the contribution that the tenant has towards utilities, taxes and insurance. The tenant does not need to pay for any other building expenses in a gross lease. For this reason, gross rental rates are normally somewhat higher than "Net" rental rates.

Dec 11, 2008
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Chris G.
Broker/Agent
Lynchburg, VA

Actually what you are referring to as "Gross Lease Value" is simply the sum of all of the rents over the term of the lease. By example, if you had a 60-month lease at $1,000 per month for the entire term, the gross lease value would be $60,000. Typically a lease commission is calculated on this amount.
David L. is correct in his definition of a "gross lease", but I think the question was regarding to what I have defined.

Dec 18, 2008
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