Because landlords assume all of the operating expense risk, rents for gross leases exceed those for net leases. The markup, or spread, for gross leases varies between properties and across markets. Specifically, the markup is expected to increase with the cost of real estate services at the...

type="main" <p>The premium for the gross lease relative to the net lease is estimated using a large sample of leasing data for office properties in seven U.S. markets during 2011. After matching gross leases with net leases on propensity scores, analysis for the matched sample of 9,860 lease...</p>