Percentage Lease


Also found in: Financial.

Percentage Lease

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.

References in periodicals archive ?
A percentage lease is a way an investor can partner with a tenant; if a tenant does well, the landlord will too," she said.
Percentage lease will apply based on gross sales increasing.
MacDougall in the February 1937 JPM[R] issue provides historical insight on the percentage lease.
Kamenitzer worked out a percentage lease where rent is based on a percentage of the volume of sales at the restaurant.
Rent is 5% of gross sales-thatas right a a percentage lease with NO minimum.
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