A gross lease—also referred to as a full service lease or gross rent or a gross rent lease—is a lease with a fixed monthly or annual rental fee that includes all rent and costs of operating the property, such as utilities, maintenance, taxes, and insurance. In this way, it is similar to a typical residential lease.

A variation of a gross rent lease is a “gross lease with stops”—meaning the tenant will contribute additional amounts if the landlord’s operating costs increase above a certain level. The level at which the tenant is required to contribute additional amounts to the landlord’s operating costs is known as the stop level, as that is where the landlord’s obligation to pay all of the costs (using the fixed rent payments) stops.

In Alabama, a gross lease is a type of commercial lease agreement where the tenant pays a fixed amount that covers both the rent and all or most of the property's operating expenses, which can include utilities, maintenance, taxes, and insurance. This arrangement simplifies budgeting for tenants since they do not have to account for variable costs associated with the property. A 'gross lease with stops' is a variation where the tenant agrees to pay additional amounts if the operating costs exceed a predetermined level, known as the 'stop level.' This means that while the landlord covers all operating costs up to that point, any costs beyond the stop level would be the tenant's responsibility. The specific terms of a gross lease, including any stop levels, are subject to negotiation between the landlord and tenant and should be clearly outlined in the lease agreement. It's important for both parties to understand their obligations and rights under the lease, and they may wish to consult with an attorney to ensure the lease terms are fair and legally compliant.