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What Is a Gross Lease and How Does It Work?

A gross lease is an agreement in which the tenant agrees to pay a flat rental sum to the property owner in exchange for the exclusive use of the property. The price covers all of the expenses involved with owning a home, such as taxes, insurance, and utilities. Gross leases are extensively utilized in the commercial property leasing market and can be customized to match the needs of the tenants.  (Click here to see all Northern Michigan Commercial Real Estate Listings)

Important Takeaways

  • A gross lease is one that includes all of a tenant's out-of-pocket expenses.
  • Property taxes, insurance, and utilities are among the additional charges rolled into a gross lease.
  • Commercial real estate,…

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