Answers · Outgoings (net vs gross lease)
What are outgoings, and what's the difference between a net and gross lease?
Direct answer
Outgoings are the running costs of a property — council rates, land tax, insurance, maintenance and management. In a net lease the tenant pays outgoings on top of the rent; in a gross lease they're bundled into a single rent figure so the landlord carries them.
The distinction changes how you compare leases. A net (or 'net net') lease often shows a lower headline rent, but the tenant then pays outgoings separately, so the true occupancy cost is higher than it first appears. A gross lease bundles everything into one number, which is simpler to budget but usually carries a higher headline rent to compensate.
Industrial leases are frequently net, with the tenant responsible for most outgoings. When comparing options, always compare the total occupancy cost — rent plus outgoings — not just the rent line. Understanding exactly which outgoings you're liable for, and how they're apportioned, avoids surprises at reconciliation time.
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