Which type of property commonly uses a gross lease structure?

A gross lease structure is typically associated with residential properties, particularly apartments. In a gross lease, the landlord covers most of the operating expenses, such as property taxes, utilities, and maintenance, while the tenant pays a fixed rent. This simplicity is appealing in the residential market, where tenants may prefer to have predictable costs and not deal with the fluctuating expenses associated with property management.

On the other hand, properties like office buildings, retail outlets, and commercial warehouses often utilize different lease structures, such as net leases, where tenants are responsible for additional expenses beyond just rent. This system allows landlords to share the risk of fluctuating costs with their tenants and can be more financially advantageous for commercial properties that may have variable operating expenses. Thus, the use of a gross lease is most commonly seen in apartments, aligning with the preferences and needs of residential tenants.