Under a modified gross lease, the landlord pays for most of the costs associated with the building, but tenants are responsible for some expenses. Usually, these expenses cover things that are directly related to the tenant’s use of the space, like janitorial service, interior M&R, or a share of utilities.
Why it Matters
A modified gross lease is somewhere in between a full gross lease and a triple net lease. The terms may vary from lease to lease, and the degree to which stakeholders are invested in energy efficiency projects or other renovations may vary with them.