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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.
Gross Leases. 1  The tenant pays a flat monthly amount. 2  The landlord pays for all operating costs for the building. 3  In some cases, the tenant pays for its electricity, heat, and air conditioning.  This type of lease often contains an escalation clause that allows the landlord to increase the rent annually to offset increased expenses.