What is Full Service Gross? What is the difference between Modifies Gross and Full service Gross?

In General Area - Asked by Ed J. - Jul 28, 2009
Report Abuse
Answer this Question

Answer(s)

Chris G.
Broker/Agent
Lynchburg, VA

The various types of leases can get confusing because some people refer incorrectly to the type of lease they have. You will hear terms like "Full Service", "Gross", "Net" and "Modified" used and typically a "Net" lease is structured to provide the Landlord with a fixed net rental amount and the tenant pays most, if not all, other expenses associated with the property - this is further complicated by terms like "Triple Net", "Absolute Net", etc., but the idea is that a majority of expense on the property is paid by the tenant.
In a "Full Service" or "Gross" lease, the landlord is paying all of the expenses associated with the property, in which case the tenant has very little, if any, additional expense other than rent. The landlord is usually paying utilities, janitorial, taxes, maintenance, etc.
A "Modified Gross" lease is usually a hybrid of the two extremes, if you consider the "Net" end of the spectrum having less obligations on the Landlord's side and the "Full Service" or "Gross" end of the spectrum having less obligations on the Tenant's side. These leases may have the tenant paying some utilities and janitorial and the landlord paying taxes, insurance, trash removal or any combination thereof.

Jul 29, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question