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.
Epstein outlines how recent and pending changes to generally accepted accounting principles (GAAP) are likely to create confusion when corporations and their attorneys try to enforce accounting-related contractual terms commonly contained in, among others, merger and acquisition (M&A) agreements, earn-outs and percentage lease arrangements.
Rent is 5% of gross sales-thatas right a a percentage lease with NO minimum.
Net income and FFO were below the company's expectations due to several factors, including conversion from a fixed and percentage lease structure to a taxable REIT subsidiary (TRS) structure, the slower than expected timing of acquisitions, and the seasonally weak demand associated with first quarter hotel operations generally.
The eight Silicon Valley hotel properties accounted for 16 percent of the company's percentage lease revenues for the year 2003.
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