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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.
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.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Modified Gross Lease Calculator is built to give a quick, browser-based estimate for modified gross lease. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the modified gross lease result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this modified gross lease estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter base rent/SF and tenant SF.
- Enter total opex/SF and the expense stop.
- Enter utilities/SF passed through to tenant.
- 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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