Modified Gross Lease is a type of a rental arrangement between a commercial property tenant and landlord. Modified Gross Leases are also referred to as “MG Leases“.
The types of properties where you typically find Modified Gross Lease rent structures are, office space, warehouse space, retail space and some live/work facilities. The most common property type to have Modified Gross leases are industrial & warehouse properties.
In modified gross leases, a landlord will quote a rent to the tenant that not only includes the base rent, but also includes your proportionate share of other expenses associated with the property. These expenses are things like property taxes, insurance, maintenance and utilities.