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What’s the Difference Between Net Lease and Gross Lease?


A gross lease means that the stated rental rate includes the major expenses from real estate taxes, property insurance, and common area maintenance. In an absolute gross lease or full-service lease, the quoted rate will also include most utilities like electricity, gas, water, and sewer. A triple net lease or net lease is a lease where the rent is quoted as a base rate.

The expenses for real estate taxes, insurance, and common area maintenance are on top of that as well as utilities.

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