A full-service lease is a lease structure, most common in office space but occasionally used in flex or light industrial buildings, in which base rent includes all operating expenses — property taxes, insurance, CAM — plus additional services like janitorial and utilities. This is the most all-inclusive lease structure, sitting beyond even a standard gross lease.
Full-service lease vs standard gross lease
| Cost/service | Full-service lease | Standard gross lease |
|---|---|---|
| Property taxes, insurance, CAM | Included | Included |
| Janitorial services | Often included | Typically excluded |
| Utilities | Often included | Typically tenant-paid |
What to watch for before committing
Exact service inclusions
Confirm precisely which services are bundled into rent, since "full-service" isn't a strictly standardized term across all markets.
Suitability for industrial use
Recognize full-service leases are uncommon for pure warehouse space and more typical for office-heavy flex buildings.
Expense stop provisions
Check for expense stop clauses that could shift cost responsibility to the tenant above a base-year level.
Service quality expectations
Since the landlord manages included services, clarify expected service levels for items like janitorial and utilities.
All-in cost comparison
Compare total occupancy cost against competing lease structures rather than assuming full-service is automatically more expensive or cheaper.
Renewal rent-setting mechanics
Understand how rent is recalculated at renewal, since the bundled service costs can shift significantly over time.
When you need to know this
- Office-heavy flex space leasing — evaluating this all-inclusive structure common in office-oriented buildings
- Budgeting certainty — tenants preferring maximum predictability in monthly occupancy cost
- Comparing lease structures — understanding the most all-inclusive option available when evaluating a building
- Negotiating service level expectations — clarifying what specific services are guaranteed under a full-service arrangement
Frequently asked questions
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