Dictionary of Business Terms: percentage lease
percentage lease
lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually stipulates a minimum rental and is regularly used for retailers who are tenant.
Dictionary of Real Estate Terms: percentage lease
percentage lease
a lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually stipulates a minimum rental and is regularly used for retailers who are tenants.
Example: The percentage lease required the jewelry store to pay as additional rent 6% of annual sales in excess of $100,000. The base rent is $6,000 per year.
