Gross Lease

Learn what a gross lease is in Canadian commercial real estate — how it works, who pays what, and when it’s used.

Gross Lease

June 27, 2025


What is Gentrification?

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property taxes, insurance, and maintenance.

Why Gentrification Matters in Real Estate

In Canadian commercial real estate, gross leases simplify cost predictability for tenants, while landlords manage and budget for operating costs internally.



Characteristics include:
  • Single rent amount covering base rent + expenses
  • Landlord bears cost variability risk
  • Common in office leases or short-term rentals



Gross leases may include escalation clauses to adjust rent for rising costs.



Understanding gross leases helps tenants and landlords negotiate fair terms and budget effectively.

Example of Gentrification in Action

The startup signed a gross lease for office space, paying one monthly rent amount without separate bills for utilities or taxes.

Key Takeaways

  • Tenant pays single rent amount covering expenses
  • Landlord manages and pays operating costs
  • Provides cost predictability for tenants
  • Common in office leasing
  • May include rent escalations over time

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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