Definition: A percentage lease bases some or all of the rent on the tenant’s sales. Retail leases often combine a base rent with a percentage of sales above a stated threshold.
Example
A lease requires $2,000 base rent plus 5% of monthly sales above $50,000. At $60,000 in sales, the percentage component is $500, for $2,500 total rent.
Keep the distinction clear
The percentage commonly applies to defined sales, not net profit. Check the agreement’s sales definition, threshold, base rent, and separate expense obligations.
Related terms
Gross Lease · Net Lease · Lease
Keep studying
Property Manager Duties: The Owner, the Agreement, and the Property
References: MIAMI REALTORS: Broker test review—percentage leases
Pronunciation (US): per-SEN-tij LEES (capitals show stress)
Pronunciation reference: Merriam-Webster
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