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What is a 'Gross Lease'. A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance. A gross lease can be modified to meet the needs of a particular building's tenants. For example, a gross lease may require the tenant to pay the utility bills. Next Up.
Lease definitions are as follows: Gross Lease: The tenant pays a set sum or âgrossâ amount for rent and the landlord pays all real estate expenses. Net Lease: Generally a lease in which the tenant pays for utilities, and property taxes in addition to rent or insurance. The landlord pays for maintenance, repairs, and the property taxes or insurance not paid by the tenant. Also referred to as a single net lease or modified gross lease.