Modified gross lease,
Definition of Modified gross lease:
A type of real estate lease whereby the tenant begins to pay more of the propertys expenses as time goes on.
A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease's inception, but it takes on a proportional share of some of the other costs associated with the property as well, such as property taxes, utilities, insurance, and maintenance.
Modified gross leases are typically used for commercial spaces such as office buildings, where there is more than one tenant. This type of lease typically falls between a gross lease, where the landlord pays for operating expenses, and a net lease, which passes on property expenses to the tenant.
How to use Modified gross lease in a sentence?
- Modified gross leases are common in the commercial real estate industry, especially office spaces, where there is more than one tenant.
- Modified gross leases are rental agreements where the tenant pays base rent at the lease's inception as well as a proportional share other costs like utilities.
- Other costs related to the property, such as maintenance and upkeep, are generally the responsibility of the landlord.
Meaning of Modified gross lease & Modified gross lease Definition