# Modified gross lease

> The dominant US lease structure — base rent includes operating expenses up to a base year.

**Canonical URL:** https://classa.info/glossary/modified-gross-lease
**Page type:** glossary
**Last updated:** 2026-04-01T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- The dominant US lease structure — base rent includes operating expenses up to a base year.
- Under a modified-gross structure, the tenant pays a fixed base rent that includes operating expenses calculated for a base year (typically the first full calendar year of the lease).

## Key facts
- **category**: Lease structure
- **regionScope**: US

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Citation: Source: Class A Atlas (https://classa.info/glossary/modified-gross-lease), updated 2026-04-01T00:00:00.000Z.