Full Service Gross Lease Agreement Template

Full Service Gross Lease Agreement Template

This Full Service Gross Lease Agreement (the “Agreement”) is made and entered into as of [Date] (the “Effective Date”), by and between:

Landlord: [Full Legal Name / Business Name], mailing address: [Address].
Tenant: [Full Legal Name / Business Name], mailing address: [Address].

The Landlord and the Tenant may be referred to individually as a “Party” and collectively as the “Parties.”

1. Premises

1.1. Leased Premises. Landlord leases to Tenant the following commercial space (the “Premises”): [Full Address, Suite/Unit Number, City, State, ZIP].
1.2. Included Areas. The Premises includes: [suite/office area / storage / restrooms / parking spaces], if applicable.
1.3. Condition at Move-In. Tenant accepts the Premises in its current condition, except for agreed repairs listed here: [List or “None”].

2. Term

2.1. Start Date. The lease term begins on [Start Date].
2.2. End Date. The lease term ends on [End Date], unless terminated earlier under this Agreement.
2.3. Renewal Option (Optional). Tenant may renew for [Number] additional term(s) of [Length] by giving written notice at least [X] days before the end date. Renewal rent: [Describe increase or “to be agreed in writing”].

3. Rent

3.1. Base Rent. Tenant will pay base rent of [Amount] per month (the “Rent”).
3.2. Due Date. Rent is due on the [Day] of each month.
3.3. Payment Method. Rent must be paid by [check / bank transfer / payment portal] to [Payee/Payment Details].
3.4. Late Fees. If Rent is not paid within [X] days after the due date, a late fee of [Amount or %] applies.
3.5. Returned/Failed Payments. A fee of [Amount] may be charged for returned checks or failed payments.

4. Security Deposit

4.1. Deposit Amount. Tenant will pay a security deposit of [Amount] before move-in.
4.2. Use of Deposit. The deposit may be applied to unpaid rent, unpaid fees, damage beyond normal wear, cleaning required due to Tenant’s failure to maintain the Premises, or other lawful charges under this Agreement.
4.3. Deposit Return. The deposit will be returned within [X] days after move-out, minus lawful deductions, to the forwarding address provided by Tenant.

5. Full Service Gross Structure

5.1. Full Service Gross Concept. Rent is intended to include certain operating expenses and building services paid by Landlord, as described in this section.
5.2. Operating Expenses Definition. “Operating Expenses” means reasonable costs to operate and maintain the building and common areas, excluding Tenant’s separate obligations under this Agreement and excluding capital improvements unless required by law or primarily for efficiency and allowed to be amortized.
5.3. Included Services and Expenses. Unless otherwise stated, Landlord will provide and pay for the following, as part of the full service gross rent:

• Property taxes and assessments for the property

• Building property insurance (not Tenant’s business or contents insurance)

• Common area maintenance and common area utilities, if applicable

• Routine building services, if applicable: [lobby/cleaning / security / elevator service / HVAC operation schedule]

• Trash service for common areas, if applicable
  5.4. Excluded Costs. The following are not included unless specifically listed as included:

• Tenant’s own business insurance, inventory, equipment, and personal property coverage

• Tenant’s internet/phone and specialized services

• Repairs and costs caused by Tenant’s misuse, negligence, violations, or unauthorized alterations

• Specialized cleaning, hazardous materials handling, or compliance costs tied to Tenant’s particular operations
  5.5. Tenant’s Share of Increases (Optional – Expense Stop/Base Year). Choose one approach, or mark “None”:

• ☐ None: Landlord pays all included expenses without pass-through.

• ☐ Expense Stop: Rent includes Operating Expenses up to $[Amount] per year. Tenant pays its share of increases above the stop.

• ☐ Base Year: Rent includes Operating Expenses for the base year [Year]. Tenant pays its share of increases above the base year amount.
  If selected, Tenant’s share is calculated as: [Tenant’s rentable square footage / total rentable square footage] or [other method]. Landlord will provide reasonable supporting statements, and Tenant will pay within [X] days of notice.

6. Utilities

6.1. Utility Responsibility. Utilities are paid as follows:

• Landlord pays: [electric / water / gas / HVAC / sewer / trash] for [building/common areas and/or Premises], as included in Section 5.

• Tenant pays: [electric / gas / water / sewer / trash] that is separately metered or billed to the Premises, and all [internet/phone].
  6.2. Utility Overuse (Optional). If Tenant’s utility usage is unusually high due to equipment or extended hours, the Parties may agree to a surcharge or separate billing described here: [Describe or “None”].
  6.3. Service Interruptions. Temporary interruptions for repairs, maintenance, or emergencies do not reduce rent, unless required by law.

7. Permitted Use and Compliance

7.1. Permitted Use. Tenant may use the Premises only for: [Describe Business Use].
7.2. Compliance. Tenant must comply with all applicable laws, zoning rules, permits, and building rules.
7.3. No Illegal or Nuisance Use. Tenant will not use the Premises for unlawful activities or in a way that unreasonably disturbs others.

8. Maintenance and Repairs

8.1. Tenant Responsibilities. Tenant will keep the Premises clean and in good condition, and is responsible for routine housekeeping and minor repairs within the Premises, including: [interior surfaces / locks / fixtures used by Tenant], unless otherwise required by law.
8.2. Landlord Responsibilities. Landlord is responsible for base building systems and structural components, including: [roof / foundation / exterior walls / base HVAC], unless damage is caused by Tenant.
8.3. Damage Reporting. Tenant must promptly notify Landlord of leaks, hazards, or conditions that could cause damage.
8.4. Access for Repairs. Landlord may enter the Premises with reasonable notice to inspect or repair, except in emergencies.

9. Alterations and Improvements

9.1. Approval Required. Tenant may not make alterations without Landlord’s prior written consent.
9.2. Permits and Contractors. Tenant is responsible for permits, licensed contractors, and code compliance for approved work.
9.3. Restoration. Landlord may require restoration at move-out, except for improvements Landlord agrees may remain.

10. Insurance and Liability

10.1. Tenant Insurance. Tenant will maintain commercial general liability insurance with minimum coverage of [Amount] per occurrence and property coverage for Tenant’s equipment and inventory.
10.2. Proof of Insurance. Tenant will provide certificates of insurance upon request and upon renewal.
10.3. Responsibility for Operations. Tenant is responsible for its operations, employees/contractors, clients, and products/services.
10.4. Indemnification. To the extent permitted by law, Tenant will indemnify and hold harmless Landlord from claims arising from Tenant’s negligence, Tenant’s operations, or Tenant’s breach of this Agreement.

11. Assignment and Subleasing

11.1. Consent Required. Tenant may not assign this Agreement or sublease the Premises without Landlord’s prior written consent.
11.2. Tenant Remains Responsible. Approval of a subtenant does not release Tenant from obligations unless Landlord agrees in writing.

12. Default and Remedies

12.1. Events of Default. Default includes unpaid rent, repeated late payments, illegal activity, serious safety violations, or other material breach of this Agreement.
12.2. Notice and Cure. Unless the breach is severe, the non-breaching Party may provide written notice and allow [X] days to cure.
12.3. Remedies. Landlord may pursue lawful remedies, including termination and recovery of lawful costs, as permitted by law.

13. Termination, Surrender, and Holdover

13.1. Surrender. At the end of the lease, Tenant will vacate, remove personal property, return keys/access devices, and leave the Premises broom-clean and free of waste.
13.2. Holdover. If Tenant stays past the end date without written agreement, holdover rent will be [Amount or multiplier, such as 150% of Rent] per month (or the maximum allowed by law), and the tenancy will be treated as [month-to-month] unless prohibited by law.

14. Notices

14.1. Method. Notices must be in writing and delivered by: ☐ email ☐ certified mail ☐ personal delivery.
14.2. Notice Addresses.
Landlord: [Email and/or Mailing Address]
Tenant: [Email and/or Mailing Address]

15. Miscellaneous

15.1. Governing Law. This Agreement is governed by the laws of the State of [State].
15.2. Entire Agreement. This Agreement is the entire agreement between the Parties and replaces prior discussions.
15.3. Amendments. Any changes must be in writing and signed by both Parties.
15.4. Severability. If any provision is unenforceable, the remaining provisions remain effective.
15.5. Counterparts & E-Signatures. The Parties may sign in counterparts and electronically, if permitted.

16. Signatures

Landlord:
Signature: ___________________________
Name: [Name]
Title (if applicable): [Title]
Date: [Date]

Tenant:
Signature: ___________________________
Name: [Name]
Title (if applicable): [Title]
Date: [Date]

Witness (Optional):
Signature: ___________________________
Name: [Name]
Date: [Date]

Notary (Optional):
State of [State] )
County of [County] )
Subscribed and sworn before me on [Date], by [Name of Signer].
Notary Public Signature: ___________________________
My Commission Expires: ___________________________