Gross lease: A property lease in which the tenant pays the base rent and the landlord agrees to pay all expenses which are normally associated with ownership, such as utilities, repairs, insurance, and (sometimes) taxes.
Modified Gross lease would be where the above is modified to whatever extent the 2 parties to the lease can agree upon.
Industrial Gross Lease: An industrial gross lease means that the tenant pays rent plus a share of services. Taxes and insurance are included in the base rent; however, at the end of the year any increases in taxes and insurance are passed on to the tenant as additional rent.
If someone is confusing a gross lease for a fully serviced lease when in fact it is an industrial gross lease, that tenant may be looking at 20-25% added costs in paying for services assumed to be included in rent.
So the primary difference between typical Gross Lease and Industrial Gross Lease is that a typical Gross Lease calls for Tenant to pay base rent and Landlord to pay most all other costs as indicated whereas a typical Industrial Gross Lease calls for Tenant to pay base rent and Landlord to pay most all other costs as identified but where the Tenant may be expected to cover any increases in specified costs such as taxes, maintenance, insurance and/or utilities over the initial year of the lease.
Triple Net Leases. Shopping Centers on the other hand, usually use Triple Net Leases. Triple Net Leases (sometimes advertised as "NNN") allocate all operating expenses among the tenants. The lease will call for (a) Base Rent while clarifying the Tenant pays (b) all their own utilities brought to their premises. And (c) Common Area Maintenance (CAM) charges. These CAM charges comprise the additional charges in addition to the Base Rent.
In a true Triple Net Lease, all operating costs of every sort incurred by the landlord are allocated among the tenants, all taxes, all landscape maintenance and repairs, new roofs, insurance, HVAC maintenance and repairs/replacement... everything the owner has to pay out of pocket to operate the center will find its way back into the bill the tenant receives for his portion of the CAM charges. This CAM charges are usually smoothed out over month's to years depending on the maintenance item. But you have to be careful and read, ask questions, and sometimes challenge the lease offered you. You don't want a landlord to dump the full cost of some repairs on you, like a roof for example. The biggest surprises for tenants on CAM charges that seem to occur under any lease is usually found under the real estate taxes increases passed on to the tenant when the property sells. The Landlord has little ability to smooth out Tax Increases. They almost always get passed along dollar for dollar. Regardless of the type lease, if the real estate taxes are being passed along you will want to know how long has this landlord owed the property and does he plan to sell. I have seen the one element of real estate taxes increase the CAM charges over 100% to as much as 150%. This can be quite a shock to the tenant. It's not unusual now to find newly built shopping centers (2016) CAM charges hitting the $1.50 per square foot per month in the Livermore, CA region. This has been a radical change from the $0.10 to $0.50 per square foot per month we have enjoyed in years gone by. Some of the older centers that haven't changed hands for many years have very low taxes compared to the new taxable base created on sale. Ka-Blam!....another $1.00 per square foot per month CAM cost passed along to the unsuspecting tenant, triggered by the sale of the property.
Rather than worry over naming the lease correctly, read it and ask questions and then it doesn't matter what someone else is calling the document. You will understand how the lease works, and people can call the document whatever they want.
I find myself writing three types of leases a lot in my area: (1) Custom leases. (2) California Association of Realtors (CAR) leases ... fill in the blank type leases... and (3) Commercial Real Estate Association (AIR) Leases... another fill in the blank service used by local agents.
Custom Leases are a bloody nuisance for client's legal consultants, as due diligence requires legal reviewers to read the document for unusual terms we agents insert ... a bloody nuisance to dig through and figure out for legal reviewers.
Most of but not all of the Custom Leases I create are for month-to-month rentals and reduced down to one page. If the tenant has a problem he negotiates with the owners to solve the problem or moves out, leaving the owner with a vacancy and neither party being obligated to the other for more than 30 days.
I often use month-to-month custom lease agreements on property I personally own and sometimes my tenants stay 20 years month-to-month. It's similar to a common law marriage... you stay together because it works. It's the Custom, Long Term lease that can be the bloody nuisance for legal reviewers because of the heightened need to provide controlling terms for a lengthy marriage of interests between landlord and tenant and every paragraph can be original in some fashion requiring careful legal review.
Whereas I like month to month agreements and one-page rental agreements on commercial property I might own, the banks on the other hand like long term agreements when they make real estate commercial loans. Long term leases with strong national tenants create greatly elevated market value for commercial developers reflective of the security and certainty of their continued payment of rent on par with the tenant's bonding rates. But that's another subject for another time.