A modified gross lease is a type of commercial lease where the tenant pays a base rent along with a portion of the operating expenses, which can include property taxes, insurance, and maintenance costs. This lease structure offers a balance between the landlord's need for income and the tenant's desire for predictability in expenses. Unlike a gross lease where all expenses are covered by the landlord or a net lease where tenants pay most costs, a modified gross lease allows for shared responsibilities, making it attractive for both parties.
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