In a multi-tennant industrial lease, Modified Gross Lease seems to have different interpretations.

If you ask two different people you get two different answers. Would it be accurate to say in this lease the Landlord has the right to expense-through to the tennant utilizing
a "base year" concept for any increases in CAM, Taxes, Insurance or not? Oh, by the way A.I.R. does not provide Modified Gross Lease form...they encourage you to use
Gross Lease Form.
In Leasing Property - Asked by gene t. - Aug 6, 2010
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Answer(s)

Elizabeth B.
Broker/Agent
Scottsdale, AZ

It depends on how the Lease is written. Industrial gross and Office Gross are often defined differently. Industrial gross does not include utilities , Office Gross generaly does and sometimes also includes janitorial. Most Leases have a Base Year Stop which basicly means that the Landlords exposure to expenses Stops at the Base Year with increases over the Base Year passed on to the Tenants a prorata basic by square footage.
Elizabeth Brereton,
Ethical Property Management Services, LLC

Aug 6, 2010
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Rob B.
Chandler, AZ

You are correct with regard to the A.I.R. lease form. Does it not make sense that one would start with a Gross Lease Form and modify it to a "Modified Gross Lease"?
What does the Landlord want, what will the Tenant accept and will your skill allow you as the middle-person, agent, bring the two sides together to modify the Gross Lease? This is how you earn your commission.
Rob Baird, CA RE Lic. #544165 (One of the oldest, active licenses in CA)
951 515-5855

Aug 9, 2010
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