Negotiating A Fair Gross Commercial Lease In a gross industrial lease, you'll normally pay a single fixed charge on a monthly basis that covers your rent and all associated business expenses. If you make sure that your business will be paying a fixed rate for the space and that you'll owe the property owner no service charges, the lease clause in the landlord's lease should be relatively easy. But there are a couple of essential issues that might impact your lease payment pursuant to a gross business lease: - how the proprietor determines your rented area - whether the lease consists of a clause for rent escalation (lease hike) throughout the lease term - how you and the other renters spend for typical areas (using the "loss" and "load" aspects), and - whether there's a "grossing up" provision (used for multi-tenant structures). How the Rented Area Is Measured Rent Escalation in a Gross Commercial Lease Spending For Common Areas: The Loss and Load Factors " Grossing Up" the Base Year in Multi-Tenant Buildings Speaking to an Attorney How the Rented Area Is Measured When evaluating your business lease, the trickiest problem to consider is how the landlord has measured the area. If the space has been measured from the exterior of outside walls with no reduction for the density of interior walls, you're spending for a great deal of plaster. It's sensible to measure the space yourself to validate the property owner's figure. Clearly, if there's a considerable difference you'll wish to raise the concern throughout settlements. Rent Escalation in a Gross Commercial Lease In anticipation of inflation, some proprietors want the lease to increase year to year according to some formula. Sometimes the increase is flat and clear, such as a boost of $0.20 per square foot (sq. ft.) annually.