what is the difference between modified net lease and modified gross lease, and industrial lease?

I want to lease my building where I pay real estate taxes, building insurance, and maintenance but the lessee pays utilities, etc.
In Leasing Property - Asked by Doris B. - Mar 26, 2015
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Answer(s)

Changiz F.
Broker/Agent
Las Vegas, NV

Groos lease

Mar 26, 2015
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Changiz F.
Broker/Agent
Las Vegas, NV

Gross lease

Mar 26, 2015
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Michael L.
Broker/Agent
San Rafael, CA

These are all terms of convenience and mean different things to different people. If you are the property owner then make sure the project lease stipulates the terms you want. The actual lease language is what is important, not the name of the type of lease. You may want to have a real estate attorney help you select a lease form, whether drafted by the attorney or a commercially obtained form to make sure you get it right.

Mar 26, 2015
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Korena E.
Broker/Agent
Los Angeles, CA

Yes, what you are describing is a gross lease, but the trend today is NNN lease. I would recommend the NNN lease, because your tenants would pay for all the above mentioned expenses. If you don't understand the logistics, I would consult a professional. It will maximize your income and thus maximize your property's value.

Mar 31, 2015
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Mark S.
Broker/Agent
Brandon, FL

There might not be any difference between the three terms. But, it would depend on who you ask.
I am going to paraphrase the late Charles Akerson, who was the authority on income valuation.
There is net (everything passed-through to tenant) and there is gross (nothing passed through). Everything else is something in between. The arrangement that you discussed was something in between. It is not a gross lease because the tenant would pay for utilities and janitorial expenses. The best way to identify a lease is to get very specific because one person's net lease may or may not be the same as another person's triple-net lease. Then throw in modified gross, industrial gross, modified net, full-service, etc. and there is bound to be confusion.

Apr 1, 2015
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william s.
Appraiser
Bronx, NY

About $4.50 per square foot ;-)

Apr 2, 2015
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