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Gross Lease

What is it? A commercial real estate lease in which the tenant pays a fixed amount of rent per month or year, regardless of the landlords operating costs, such as maintenance, taxes and insurance. A gross lease closely resembles the typical residential lease. The tenant may agree to a gross lease with stops, meaning that the tenant will pitch in if the landlords operating costs rise above a certain level. In real estate lingo, the point when the tenant starts to contribute is called the stop level, because thats where the landlords share of the costs stops.

Added By: Juliana

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