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What is a 'Gross Lease'. A gross lease is a type of commercial lease where the landlord pays for the building's property taxes, insurance and maintenance. A gross lease can be modified to meet the needs of a particular building's tenants. For example, a gross lease may require the tenant to pay the utility bills. Next Up.
That is a great question. Because the simple answer is that a modified gross lease means that you are going to need to ask the landlord what modified gross means. If it is a modified gross, it means the lease is not a net lease, but it is not a gross lease. It is a hybrid and the tenant is going to have to cover some portion of the operating expenses. The possibilities are just about endless - kind of like Baskin Robbins - at least 31 different flavors.