percentage lease
Also found in: Legal.
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.