Modified Gross Lease Template

The modified gross lease is a term applied to a lease where the expenses are both the landlord and the tenants responsibility.

Modified gross lease template. A gross lease is the most common type of commercial rental agreement. A modified gross lease is a hybrid between a gross lease and a net lease. Commonly negotiated expenses include property taxes property insurance common area maintenance cam utilities and structural repairs. Conceptually a modified gross lease is pretty simple to understand.

The most common type of net lease is the triple net lease nnn. Fenton company a california corporation landlord and skinmedica inc a california corporation tenant. In a modified gross lease the operating expenses are negotiated and shared between the landlord and the tenant. The three most common types of commercial leases are.

Modified gross office lease. Utilities would likely also be negotiated in the modified net lease. It is the occupation of space or property by a tenant in return for a fixed monthly payment to the landlord every month. With a triple net lease the tenant pays taxes insurance and maintenance in addition to the monthly rent.

A modified gross lease is most often used for office complex suites. The landlord and tenant usually set up a split of maintenance expenses while the tenant agrees to pay taxes and insurance. The modified net lease is a compromise between the gross lease and the triple net. Net gross and modified gross.

A modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the leases inception but it takes on a proportional share of some of the other costs associated with the property as well such as property taxes utilities insurance and maintenance. Usually the tenant is responsible for the base rent and cam and the landlord is responsible for the property taxes and property insurance. This standard form modified gross office lease lease is entered into effective as of august 14 2000 between american assets inc as agent for pacific sorrento mesa holdings lp a california limited partnership and pacific stonecrest holdings lp a california limited partnership as tenants in common landlord and bakbone software inc a california corporation tenant who agree as follows. Lease this lease agreement herein lease is made and entered into this day of by and between the landlord and tenant identified in section 11 and constitutes a lease between the parties of the leased premises defined in section 11 on the terms and conditions herein set forth.

Modifications can require the tenant to pay for cleaning services and contribute to common area maintenance cam while the landlord pays real estate taxes and property and building maintenance. Net leases allocate building costs and responsibilities between the landlord and the tenant.