Final answer:
A full-service lease includes all building expenses in the base rent, while a lease with rent based on a percentage of gross sales is known as a percentage lease.
Step-by-step explanation:
A full-service lease in the context of commercial real estate generally refers to a lease agreement where the landlord is responsible for all of the building expenses, including insurance, taxes, and maintenance, which are collectively known as "nets". In such a lease, these costs are included in the base rent. In contrast, a lease where the tenant pays a base rent plus an additional charge that is a percentage of the tenant's gross sales is typically referred to as a percentage lease, and is commonly used in retail businesses. Full-service leases simplify budgeting for tenants by offering predictable costs, as opposed to other leases where variable expenses such as utilities or janitorial services may fluctuate and are paid separately by the tenant.
A full-service lease is a lease agreement where the landlord covers all additional costs and services associated with the property, such as property taxes, insurance, and maintenance. The tenant pays a base rent that includes these costs, but typically does not cover utilities or janitorial services. This type of lease provides convenience for the tenant, as they do not have to worry about managing additional expenses related to the property.