What type of lease often includes responsibilities for property management in terms of common areas?

The modified gross lease is characterized by its allocation of responsibilities between the landlord and tenant for property management and expenses. In this type of lease, the landlord typically covers certain operating costs, such as property taxes, building insurance, and maintenance of common areas, while the tenant is responsible for additional expenses, like utilities or janitorial services.

This structure allows for a more flexible arrangement, where both parties share the financial responsibilities, making it vital for both the landlord and tenant to clearly define what costs fall under each party's obligations.

On the other hand, a gross lease generally places most of the financial burden on the landlord, a net lease tends to require tenants to cover additional costs like property taxes or insurance, and a percentage lease typically involves a variable rent based on a percentage of the tenant’s sales, focusing more on the tenant's revenue rather than on operational management of common areas.