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.
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.