Gross Lease
Learn what a gross lease is in Canadian commercial real estate — how it works, who pays what, and when it’s used.
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
- Net Lease
- Triple Net Lease
- Operating Costs
- Commercial Lease
- Escalation Clause
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
