Modified gross lease
A middle ground between gross and net leases, where tenant and landlord split operating costs in a way the lease spells out. Tenants often pay utilities and janitorial while the landlord pays taxes and insurance.
Also called: MG lease, modified gross, semi-gross lease
Related terms
A lease where the tenant pays one flat rent and the landlord covers property taxes, insurance and maintenance out of it. Common in office buildings and residential rentals.
A lease where the tenant pays base rent plus its share of property taxes, insurance and maintenance. The landlord's income is more predictable, and the tenant takes on rising operating costs.
Fees tenants pay for upkeep of shared areas like parking lots, lobbies, landscaping and security, usually split by each tenant's share of the space. Estimates are billed monthly and reconciled once a year.
The fixed rent in a commercial lease before any added charges like CAM, taxes or percentage rent. It is usually quoted per square foot per year and often rises by set amounts over the term.
The ongoing costs of running a property, such as taxes, insurance, repairs, management, utilities and HOA dues. They do not include mortgage payments or major capital improvements.