Lease Types and Structures

Full-Service Lease

A lease structure bundling all operating expenses plus services like janitorial and utilities into rent — most common in office space, occasionally used in flex or light industrial buildings.

Home Glossary Lease Types and Structures Full-Service Lease
Definition

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/serviceFull-service leaseStandard gross lease
Property taxes, insurance, CAMIncludedIncluded
Janitorial servicesOften includedTypically excluded
UtilitiesOften includedTypically 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

What is a full-service lease? +
A full-service lease is a lease structure in which base rent includes all operating expenses plus additional services like janitorial and utilities, most common in office space.
Is a full-service lease common for warehouse space? +
Not typically — full-service leases are far more common in office buildings and are only occasionally used for office-heavy flex or light industrial space, since pure warehouse operations usually use triple net structures instead.
What is the difference between full-service and gross leases? +
A full-service lease typically includes additional services like janitorial and utilities beyond what a standard gross lease bundles, which usually covers only property taxes, insurance, and CAM.
Are utilities always included in a full-service lease? +
Often yes for office-oriented full-service leases, but always confirm the exact inclusions in your specific lease, since terms can vary between deals labeled full-service.

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