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percentage lease

   Also found in: Legal 0.01 sec.
percentage lease

A lease that requires rent payments based on a percentage of the gross sales of the tenant. It is common with retail leases and food and beverage leases. Most contain a minimum payment clause so that if gross sales drop below a certain level the rent will be the minimum payment rather than a percentage of sales.



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Like base rent, you''ll encounter percentage leases in retail spaces.
Rent is 5% of gross sales-thatas right a a percentage lease with NO minimum.
Kamenitzer worked out a percentage lease where rent is based on a percentage of the volume of sales at the restaurant.
 
 
 
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