A modified gross lease is a commercial lease in which the tenant (Lessee) pays base rent plus a share of certain operating expenses, such as utilities or maintenance. It blends features of a gross lease—a lease in which the landlord (Lessor) covers expenses with a tenant's all-inclusive, flat rate rental payment—and a net lease, a type of lease in which the tenant (Lessee) pays them all. A modified gross structure offers flexibility and allows costs to be shared between landlord (Lessor) and tenant (Lessee).