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Percentage Lease

   Also found in: Financial 0.03 sec.

A rental agreement, usually with respect to a retail business property, whereby a portion of the gross sales or net sales of the tenant is used to determine the rent.

There is generally a provision in a percentage lease that calls for a minimum or base rental. It protects the lessor in the event of poor 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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