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 New Jersey, 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, property taxes, and insurance. This arrangement simplifies budgeting for tenants since they can anticipate their monthly costs without worrying about variable expenses. However, it's important for tenants to carefully review the lease terms to understand what expenses are included and if there are any exceptions. A 'gross lease with stops' is a variation where the tenant may be responsible for additional costs if the operating expenses exceed a predetermined level, known as the 'stop level.' This means that while the tenant enjoys a fixed rent for a certain range of expenses, they will be liable for any increases beyond that range. Both types of leases are subject to negotiation between the landlord and tenant, and the specific terms can vary widely. Tenants considering a gross lease or a gross lease with stops should consult with an attorney to ensure they fully understand their obligations and the potential financial implications.