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Modified Gross Lease Calculator

A modified gross (MG) lease structure splits responsibility between landlord and tenant: landlord covers opex up to a per-SF expense stop, tenant pays the over-stop portion plus their own metered utilities. This calculator computes the all-in tenant occupancy cost so brokers can compare apples-to-apples against full-service gross and triple-net alternatives.

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MG often passes utilities directly

Total annual occupancy cost

$324,000

Effective rent / SF

$32.40

Base rent

$280,000

Over-stop opex

$20,000

Utilities pass-through

$24,000

Monthly all-in

$27,000

How the math works

Modified gross (MG) leases sit between full-service gross (landlord pays everything) and triple-net (tenant pays everything). Tenant pays base rent plus opex over a stop plus their own utilities. Landlord retains responsibility for maintenance and insurance up to the stop.

MG is the most common office lease structure outside of full-service downtown markets. Tenants like predictability; landlords protect against opex inflation.

How to Use

  1. Enter base rent/SF and tenant SF.
  2. Enter total opex/SF and the expense stop.
  3. Enter utilities/SF passed through to tenant.
  4. Read all-in annual and monthly occupancy cost.

Frequently Asked Questions

MG vs FSG vs NNN?

Full-service gross (FSG) bundles all opex into rent — landlord risk. MG includes opex up to stop. NNN passes 100% of opex to tenant.

Why pass utilities separately?

Utilities vary widely by tenant use (data centers, restaurants, biotech). Direct metering aligns cost with consumption.

Where is MG common?

Suburban office, medical office, and second-tier downtown markets. Class-A urban office often runs FSG.

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