What does "modified gross" represent?

In Leasing Property - Asked by William F. - Feb 1, 2017
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Robert B.
Saint Joseph, MI

Typically means LL pays taxes and insurance. Ten. pays CAM and Util.

Feb 1, 2017
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Juanita A.
Hallandale, FL

It means that some of the costs of owning property will be shared between the landlord and tenant (insurance, maintenance, taxes, utilities). You should always confirm what is paid by who, don't assume it is always common area maintenance and utilities. Most of the time it will be, but better safe than sorry, just verify.

Feb 2, 2017
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howard k.
Framingham, MA


Feb 2, 2017
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Kathy S.
Petaluma, CA

Tenant pays utilities, janitorial to your premises, and a portion of common area maintenance. Frequently it also means that the tenant pays a prorata share of the INCREASE in the property's real estate tax and insurance over the base year. Gross Lease has the tenant pay utilities and interior janitorial.

Feb 2, 2017
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Drew R.
Austin, TX

Rental agreement where the tenant pays base rent at the lease’s inception, but in subsequent years, also pays a proportional share, or proportional share above a base amount, of the some or all of the property’s operating expenses.
As an example calculation, if a tenant pays $20/sf in base rent for the duration of its lease and property expenses are $10/sf in year 1 and $11/sf in year 2, then the tenant may pay $20/sf in year 1 and $21/sf in year 2 ($20/sf base rent plus the increase in expenses over the base year).

Feb 5, 2017
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Simon C.
New York, NY

A modified gross is a of lease where the tenant will be responsible for their proportionate share of one or more expense. The landlord will pay the remaining expenses for example, real estate taxes. Landlord pays for the base year and the tenant pays for the increases over the base year.

Jul 13, 2017
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