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 Colorado, a gross lease is a type of commercial lease agreement where the tenant pays a fixed amount that covers the rent and all other property-related expenses, such as utilities, maintenance, taxes, and insurance. This arrangement simplifies budgeting for tenants since they do not have to account for variable operating costs. However, the specific terms of a gross lease can vary, and it's essential for both landlords and tenants to carefully review and understand the lease agreement. 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 costs up to that point, any increases beyond the stop level would be the tenant's responsibility. Colorado does not have specific statutes that govern the structure of gross leases, so the terms are generally dictated by the lease agreement itself. As with any legal contract, it is advisable for parties entering into a gross lease to consult with an attorney to ensure that their rights and obligations are clearly defined and protected.