A modified gross is usually a situation where the landlord asks the tenant to bear some of the building's expenses, there is more common in multi-tenant building, whereas single tenant buildings tend to be more of a NNN lease where the tenant pays all of the building expenses.
Examples of building charges I have seen landlord's place on the tenant are proportionate share of water/sprinkler charge, lobby attendant, elevator maintenance, trash, taxes or any other operating expense that the landlord wishes to shift to the tenant.
Another form of modified gross which is very common in NYC where I do business is where the tenant pays their proportionate share of the increase in expenses over base year. This is commonly applied to real estate taxes or fuel charges. Have also seen clauses for tenants being responsible for increases in insurance, hallway electric, porters wages, or general operating expenses. So what tenant is responsible for can vary greatly from state to state and building to building depending on local customs, how the landlords run their buildings and the deal the tenant is able to negotiate.
Dec 28, 2014