What is a modified gross lease?

A modified gross lease is a commercial lease in which the landlord and tenant share responsibility for certain operating expenses. Unlike a Triple Net (NNN) lease, where tenants often pay most property expenses, a modified gross lease divides expenses according to the terms negotiated between the parties.

Because every lease is different, it’s important to understand exactly which expenses are included in the rent and which may be billed separately.

If you’re evaluating commercial lease opportunities, I’d be happy to help explain the different lease structures and what they may mean for your business.