Lease Agreement

TI/LC: Tenant Improvements / Leasing Commission In Commercial Real Estate

TI/LC: Tenant Improvements / Leasing Commission In Commercial Real Estate

A tenant improvement, or TI, refers to the improvements a commercial property owner makes to the interior of a rental space in order to suit the needs of a new tenant.

The leasing commission, or LC, is an amount paid by the owner of the property based on a percentage of the lease value.

Modified Gross Leases in Commercial Real Estate

Modified Gross Leases in Commercial Real Estate

The modified gross lease, also sometimes referred to as the modified net lease, is a combination of the gross lease and the net lease. The operating expenses are both the landlord and tenant's responsibility. A modified gross lease falls in between the spectrum of a net lease (where the tenant is responsible for the operating expenses) and a gross lease (where the landlord is responsible for the operating expense).