What is the difference between a gross lease and a modified gross lease?
Likewise, what does modified gross lease type mean?
Modified gross leases are rental agreements where the tenant pays base rent at the lease's inception as well as a proportional share other costs like utilities. Other costs related to the property, such as maintenance and upkeep, are generally the responsibility of the landlord.
Furthermore, what is a full service gross lease? Full Service Gross Lease. A commercial lease where the tenant pays a base rent and the landlord pays for all operating expenses related to the tenant's occupancy of the space such as common area maintenance, utilities, property insurance, and property taxes.
Furthermore, how is modified gross lease calculated?
How to Calculate lease rates – NNN – Modified Gross – Full Service Gross. This means that if you are renting a space that is 1,000 SF then your rent per month will be: $687.50/mo plus utilities. This means that if you are renting a space that is 1,000 SF then your rent per month will be: $833.33/mo plus utilities.
What is a modified net lease?
The modified net lease is a compromise between the gross lease and the triple net. The landlord and tenant usually set up a split of maintenance expenses, while the tenant agrees to pay taxes and insurance. Utilities would likely also be negotiated in the modified net lease.