what is a modified gross lease 
a modified gross lease is a type of real estate rental agreement where the tenant pays base rent at the lease s 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 modified gross leases are typically used for commercial spaces such as office buildings where there is more than one tenant this type of lease typically falls between a gross lease where the landlord pays for operating expenses and a net lease which passes on property expenses to the tenant all agreements should be carefully reviewed by both parties even if the lease uses common terminology it should be treated as though it s a unique document for your own situation 