Definition: Rent calculated using a stated percentage of a tenant's sales or receipts, often in addition to base rent and sometimes only above a breakpoint.
Example
A retail lease requires base rent plus an agreed percentage of qualifying sales above a defined threshold.
Keep the distinction clear
The lease defines sales, exclusions, reporting, and the breakpoint. Percentage rent is different from a broker's percentage commission.
Related terms
Percentage Lease · Lease · Gross Lease
Keep studying
References: FREC Course II syllabus, Session 15
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