A modified gross lease is a commercial lease in which the tenant pays a fixed base rent on a monthly or annual basis, but also agrees to pay a proportional amount of the operating expenses for the property, such as:

• taxes

• property insurance

• utilities

• maintenance and repairs (including structures such as the roof), systems (heating, ventilation, and air conditioning and electrical)

• common area maintenance (CAM) such as maintenance of the parking lot, landscaping, maintenance staff, security staff, and maintenance of elevators and escalators.

There are many variations of modified gross leases, with different expenses reimbursed by the tenant to the landlord, and different methods of calculating the tenant’s proportionate share of the expenses.

In Missouri, a modified gross lease is a type of commercial lease agreement where the tenant pays a set base rent plus a share of the property's operating expenses. The specific expenses covered by the tenant can vary, but they typically include property taxes, insurance, utilities, maintenance and repairs, and common area maintenance (CAM) costs. The exact terms of what expenses are covered and how the tenant's proportionate share is calculated are negotiated between the landlord and tenant and detailed in the lease agreement. It's important for both parties to clearly understand and agree upon these terms to avoid disputes. Missouri does not have specific statutes that govern the structure of modified gross leases, so the terms are largely dictated by the lease agreement itself. Tenants and landlords should consider consulting with an attorney to ensure that their lease agreements are fair, clear, and legally sound.