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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.
A full service or FS lease is one that includes the above expenses for the first year (Base Year) of the lease and then annual increases are passed through to the tenant(s). An industrial gross or IG lease covers property taxes and insurance in the Base Year.