If you are weighing office space, the gross vs net lease question decides how much you actually pay each month — not just the rent on the headline. A gross vs net lease comparison comes down to one thing: who covers the property’s operating costs, the landlord or you.
A gross lease (often called a full-service lease) rolls taxes, insurance and upkeep into a single fixed payment. A net lease strips those out of the base rent and bills them to the tenant, usually in rising tiers known as the net lease ladder. This guide walks through both, shows who pays what, and helps you decide which fits an office tenant who values predictable costs.
This is general information, not legal or financial advice — consult a qualified attorney, CPA or commercial real-estate advisor before signing any commercial lease. Jurisdiction: United States. Last reviewed 2026.
Wezoo snapshot — private offices (US, New York sample)
- 63 private offices available on Wezoo
- Price range: from $530 to $15,875 per month
- Median: about $1,878 per month
- Top operators: WeWork, Regus, Spaces
Figures reflect current Wezoo private-office listings in a major US market and are shown to illustrate real monthly ranges — not a nationwide total.
What is a gross lease?
A gross lease is a commercial lease in which the tenant pays one flat rent and the landlord covers the property’s operating expenses — property taxes, building insurance, and common-area maintenance. Because everything is bundled, the tenant can forecast a single, stable number for the year.
Gross leases are the norm for multi-tenant office buildings, where splitting shared costs between dozens of tenants would be messy. The trade-off: the base rent is usually higher than a net lease, because the landlord prices those operating costs into the rate. For a fuller definition, see Investopedia’s gross lease entry.
What is a net lease?
A net lease shifts some or all of the operating costs from landlord to tenant. The base rent is lower, but the tenant pays separately for property taxes, insurance, or maintenance — depending on how many “nets” the lease includes. The three costs are often called the three nets. Investopedia’s net lease overview breaks down the structure in detail.
The net lease ladder: single, double and triple net
Net leases climb in tiers. Each rung moves one more cost onto the tenant. The most common in commercial real estate is the triple net lease, where the tenant covers all three.
| Net lease type | Tenant pays on top of base rent |
|---|---|
| Single net (N) | Property taxes |
| Double net (NN) | Property taxes + building insurance |
| Triple net (NNN) | Property taxes + insurance + maintenance (CAM) |
If you want the full mechanics of the top rung, our companion explainer on the triple net lease goes deeper, and the modified gross lease guide covers the middle ground where costs are split.
Gross vs net lease: the core difference at a glance
The gross vs net lease split is really a question of certainty versus control. A gross lease gives you one predictable figure. A net lease gives you a lower base and visibility into the real operating costs — but those costs can move year to year.
| Cost item | Gross (full-service) lease | Net lease |
|---|---|---|
| Base rent | Higher, but all-in | Lower base, plus add-ons |
| Property taxes | Landlord | Tenant (from single net up) |
| Building insurance | Landlord | Tenant (from double net up) |
| Maintenance / CAM | Landlord | Tenant (triple net) |
| Budgeting | Predictable, one figure | Variable, tracks actual costs |
| Best suited to | Office tenants who want certainty | Tenants who want control and transparency |
One practical rule when you read a gross vs net lease quote: always ask the landlord or broker to spell out which costs are “inside” the rent and which are billed on top. In a gross deal the answer is short. In a net deal, ask for the estimated annual operating costs per square foot so you can compare the fully loaded number against a full-service quote.
What does a gross vs net lease mean for your monthly cost?
Under a gross lease, your monthly cost is the rent — full stop. Under a net lease, your monthly cost is the base rent plus your share of taxes, insurance and maintenance, which the landlord typically estimates and reconciles each year. Two spaces with the same “rent” can cost very different amounts once the nets are added.
That is why comparing only the base rate is misleading. A $30 per square foot gross rate and a $22 per square foot triple net rate can land in the same place once you add the operating costs to the net deal.
When should an office tenant choose a gross lease over a net lease?
Choose a gross lease when predictable budgeting matters more than squeezing the base rate — a common priority for small teams, startups and anyone who does not want surprise reconciliation bills. Choose a net lease when you want transparency into actual building costs and are comfortable managing variable expenses.
Growing companies often start with certainty and trade toward control as they scale. If your finance team values a clean, single line item, gross wins. If they want to audit every cost, net can work in your favor.
Full service vs net lease: are they the same as gross?
“Full-service” and “gross” are used almost interchangeably for office space — both mean the landlord covers operating costs inside one rent figure. A full-service gross lease sits at the opposite end of the spectrum from a triple net lease, where the tenant covers nearly everything. Between them sits the modified gross lease, which splits costs by negotiation.
Knowing where a lease sits on this spectrum tells you how much financial risk you are taking on. The further you move from gross toward triple net, the more building costs land on your desk — and the more your budget rises or falls with the property’s actual expenses. Neither is inherently better; they simply trade certainty for control.
Which lease gives the most predictable costs?
A gross (full-service) lease is the most predictable, because the landlord absorbs the variable costs. If your priority is knowing exactly what leaves your account each month, gross is the safer structure. If you would rather pay only the real costs and keep the base rent low, a net lease fits — provided you can absorb the year-to-year swings.
For teams that want that predictability without signing a multi-year commercial lease at all, a flexible private office is worth a look. On Wezoo you can compare private offices from operators like WeWork, Regus and Spaces with a clear monthly “from” price, then request the space that fits. Our private office guide explains how that works.
Want predictable monthly costs without the lease admin?
Frequently asked questions
What is the main difference between a gross and net lease?
In a gross lease the landlord pays the property’s operating costs inside one fixed rent. In a net lease the tenant pays those costs — taxes, insurance and maintenance — separately, on top of a lower base rent.
Is a gross lease more expensive than a net lease?
The base rent on a gross lease is usually higher, but it is all-inclusive. A net lease has a lower base rent, yet the added operating costs can bring the total to a similar level. Compare the fully loaded cost, not just the base rate.
What are the three nets in a net lease?
The three nets are property taxes, building insurance, and maintenance (common-area maintenance, or CAM). A single net covers taxes, a double net adds insurance, and a triple net adds maintenance.
What is a full-service lease?
A full-service lease is another name for a gross lease in the office market. The tenant pays one rent and the landlord covers taxes, insurance and building upkeep.
Which lease type is better for a small office tenant?
Many small tenants prefer a gross or full-service lease for its predictability, since one fixed figure is easier to budget. Tenants who want cost transparency and lower base rent may prefer a net lease. There is no universal answer — it depends on your cash flow and appetite for variable costs.
Can I avoid commercial lease complexity altogether?
Yes. A flexible private office bundles rent, utilities and services into one monthly figure with no long lease, which sidesteps the gross vs net lease decision entirely. You can browse and request private offices on Wezoo.
This is general information, not legal or financial advice — consult a qualified attorney, CPA or commercial real-estate advisor before signing any commercial lease. Jurisdiction: United States. Last reviewed 2026.
