Dictionary of Business Terms: overage
overage
- too much; opposite of shortage.
- in leases for retail stores, amount to be paid, based on gross sales, over the base rent. See also override; percentage lease.
Dictionary of Real Estate Terms: overage
overage
in leases for retail stores, amounts to be paid, based on gross sales, over the base rent.
Example: Winfield leases retail space in a shopping center. The lease calls for a base rent of $2,500 per month plus 5% of gross sales over $10,000. The first month, Winfield has sales of $20,000. In addition to the $2,500 base rent, Winfield pays an overage of $500 [.05 × ($20,000 – $10,000)].
