Legal Definitions - full-service lease

A full-service lease is a type of commercial rental agreement where the tenant pays a single, all-inclusive rent payment. In this arrangement, the landlord is responsible for covering most or all of the property's operating expenses and services. These typically include utilities (such as electricity, water, heating, and air conditioning), property taxes, building insurance, and common area maintenance (like cleaning, landscaping, and security). This structure simplifies budgeting for the tenant, as many variable costs are absorbed by the landlord, allowing them to focus on their core business operations.

Here are some examples:

• Imagine a small tech startup leasing an office space in a modern business park. Under a full-service lease, their monthly rent payment covers not only the use of their private office but also all electricity, heating, and air conditioning costs, the building's property taxes, insurance, and the maintenance and cleaning of shared hallways, restrooms, and lobbies. The startup receives one bill each month, simplifying their financial management and allowing them to avoid separate utility bills or property tax assessments.

• Consider a dental practice renting a suite in a professional medical building. With a full-service lease, the practice's fixed monthly rent includes the cost of their leased space, all utilities, the building's property taxes and insurance, and the upkeep of common areas such as the shared waiting room, reception desk, and parking lot. This arrangement means the dental practice doesn't have to manage separate accounts for electricity, water, or building maintenance, providing predictable operating costs and allowing them to concentrate on patient care.