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.

Creative space: property managers tackle vacancy rates by exploring new leasing options and cost structures

One possible solution that was discussed was a percentage lease. Other insights from the luncheon discussion: the pool and frequency of diners is shrinking and that morn and pop establishments are disappearing.

The Real Estate Board of New York hosted its October Retail Committee Luncheon at the Harvard Club

MacDougall in the February 1937 JPM[R] issue provides historical insight on the percentage lease. During the Great Depression, landlords had to negotiate percentage leases with extremely low minimum payments or even "no minimum" percentage leases to promote development of new shopping areas.

The percentage lease: a necessity during the depression

Kamenitzer worked out a percentage lease where rent is based on a percentage of the volume of sales at the restaurant.