Leasing Strategies

Understanding Percentage Rent Leases Percentage rent leases represent a distinctive approach in retail leasing agreements, diverging significantly from the conventional fixed rent structure. In essence, a percentage rent lease stipulates that a tenant pays a base rent along with a variable component, which is determined as a percentage of their gross sales revenue. This model … Read more

Introduction to Percentage Rent Leases Percentage rent leases represent a distinctive structure in commercial real estate agreements, particularly within the retail sector. Unlike traditional flat-rate leases, where a tenant pays a fixed monthly rent regardless of sales performance, percentage rent leases tie rental payments directly to the tenant’s gross sales. This alignment allows landlords to … Read more