Under which lease type does the landlord cover all operating expenses?

In a gross lease, the landlord is responsible for covering all operating expenses associated with the property. This type of lease structure means that the tenant pays a fixed amount of rent, and the landlord takes care of additional costs such as property taxes, insurance, and maintenance. This can simplify budgeting for tenants since they do not have to worry about fluctuating operating expenses.

While net leases and their variations (like net-net leases) shift some or all operating expenses onto the tenant, a gross lease simplifies the financial arrangement by placing the burden of those costs squarely on the landlord. This aspect is particularly attractive for tenants who prefer predictable expenses, as they can focus on their core business operations without the added complexity of variable leasing costs.