Real Estate Glossary

What is Modified Gross?

Modified Gross is a type of lease agreement used in commercial real estate. It is a hybrid between a Gross lease and a Net lease. In this type of lease, the tenant pays a base rent, and also pays a share of the operating expenses of the building. This can include expenses such as property taxes, insurance, and maintenance costs. The split of expenses between the landlord and the tenant is typically outlined in the lease agreement.