A modified gross lease is a middle-ground structure. It blends the simplicity of a gross lease with the cost-sharing of a triple net lease. The landlord bundles some operating costs into the base rent, and the tenant pays the rest separately.
What’s typically included vs. separate
The split is negotiated lease by lease, but a common arrangement is:
| Included in base rent | Paid separately by tenant |
|---|---|
| Property taxes | Electricity / gas |
| Building insurance | Janitorial for your unit |
| Structural maintenance | Sometimes a share of CAM |
The catch for small businesses
“Modified” gives landlords room to define exactly which costs you carry, and those costs can still change year to year. You get fewer pass-throughs than NNN, but the total is still not fully predictable.
WareSpace keeps it simple with a fully all-inclusive rate: docks, HVAC, utilities, security, and maintenance in one flat monthly number. Compare structures in our cost-to-rent guide or get an instant quote.
