Property Management

In Hawaii, what does a 'gross lease' vs. 'modified gross lease' mean for commercial tenants?

AA. They are identical; the terms are interchangeable
BB. In a gross lease, the landlord pays all operating expenses; in a modified gross lease, some expenses are shared between landlord and tenant as negotiated✓ Correct
CC. A modified gross lease always favors the tenant
DD. Gross leases are only for retail; modified gross for office

Explanation

A gross lease has the landlord paying all operating costs. A modified gross lease shares some expenses between landlord and tenant, with the specific split negotiated in each lease.

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