Property Management

A 'modified gross lease' for commercial property typically means:

AA. The landlord pays all expenses and the tenant pays a fixed rent
BB. Some expenses are paid by the landlord and some by the tenant, negotiated between the parties✓ Correct
CC. The tenant pays all expenses
DD. Rent is modified annually based on CPI

Explanation

A modified gross lease falls between a full gross and triple net lease. Some operating costs are included in the rent (landlord's responsibility) while others are passed through to the tenant. The specific division is negotiated.

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