Which lease arrangement results in a fixed rent with the landlord paying all operating expenses?

• A. Gross Lease
• B. Net Lease
• C. Double Net Lease
• D. Triple Net Lease

Answer: (A)

In this type of lease, the key idea is who covers operating costs. A gross lease sets a fixed rent, and the landlord pays all operating expenses—property taxes, insurance, maintenance, and often CAM. The tenant simply pays the fixed rent and typically isn’t billed separately for those costs. This contrasts with net leases, where the tenant takes on some or all of those costs, which usually lowers the base rent but adds separate expense responsibilities. For example, triple net requires the tenant to pay taxes, insurance, and maintenance; double net covers taxes and insurance; single net covers only taxes. So the arrangement with fixed rent and the landlord paying all operating expenses fits a gross lease.