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 Michigan, a gross lease is a type of commercial lease agreement where the tenant pays a fixed amount that covers rent and all or most of the property's operating expenses, including utilities, maintenance, taxes, and insurance. This arrangement simplifies budgeting for tenants since they can anticipate their monthly costs without worrying about variable expenses. However, the specific terms of a gross lease can vary, and it's essential for both landlords and tenants to carefully review and negotiate the lease agreement to ensure clarity on what expenses are included and any exceptions. 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 protects the landlord from rising costs while providing the tenant with a cap on their financial obligations. Both types of leases are subject to Michigan's general contract laws, and it's advisable for parties entering into such agreements to consult with an attorney to ensure their interests are adequately protected and the lease complies with applicable laws.