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
Percentage lease will apply based on gross sales increasing.
Business For Sale; 75 -- Auto Repair, Services & Parking; AUTO CAR WASH
One possible solution that was discussed was a percentage lease.
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.
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.
Restaurant Guy' leads star steak chef to Britney Spears' dining spot at Dylan
Rent is 5% of gross sales-thatas right a a percentage lease with NO minimum.
Business For Sale; 58 -- Eating & Drinking Places; AMERICAN RESTAURANT
Legal browser ?
Full browser ?