WHAT IS A MODIFIED GROSS LEASE?
The second commercial lease type is Modified Gross, which is simply a compromise between a gross and net lease. It’s basically a full service gross lease, with specific individual operating expenses paid directly by the tenant in addition to the gross rent. Modified gross leases typically break out electrical and/or janitorial services from the full service gross rent equivalent.
The modified gross lease is most suitable commercial lease type for tenants that have electrical power requirements outside the norm, that landlords would otherwise find prohibitive on a full service gross lease.
