What is Gross Lease vs. Net Lease?
In a gross lease the tenant pays one flat rent and the landlord covers the property's operating expenses; in a net lease the tenant pays base rent plus some or all of those expenses (taxes, insurance, maintenance). 'Modified gross' falls in between, splitting costs. Knowing which structure applies is essential to comparing the true cost of commercial space.
Example: One office quotes $30/sq ft gross (all-in), while another quotes $24/sq ft net plus expenses — once costs are added, the net lease may actually cost more.