Under
most gross leases, for example, tenants have no incentive to save energy in their leased premises because energy costs are based on tenant square footage.
It's more muddled with a
modified gross lease since the landlord pays these costs for the first, or base, year of the lease.
The
median gross lease value for international lease transactions was $ 105,000, with most space typically under 2,500 - square - feet.
Glimcher Realty Trust's
gross leased assets recently topped 25 million sq. ft., its properties now number 120 and its stock has climbed all the way back from a 1995 downturn...
Modified
Gross leases cover a range of lease types and terminologies used in various markets around the nation.
For example, if a building is purchased for $ 1,000,000 sale price and it produces $ 100,000 in positive net operating income (the amount left over after fixed costs and variable costs is subtracted
from gross lease income) during one year, then:
Is everything included (
gross lease), or are you expected to cover all three (triple net lease)?
But if tenants have
a gross lease — in which the owner pays those extras — an assessor may overestimate income.
Even sophisticated tax departments may miss some wrinkles, such as the effects of retenanting or a shift to
gross leases.
The listing agreement provided that if a lease were secured, the Owner would pay the Broker a commission based on «
the gross lease (including negotiated renewals, exercised options or extensions by the Tenant) or one month's rent; whichever is greater, payable when the lease is executed.»
A gross lease is when the tenant pays a specified amount of money every month and the landlord pays for all the expenses.