leasing
percentage lease
A percentage lease is a commercial lease, common in retail, in which the tenant pays a base or minimum rent plus a percentage of gross sales, usually above a set sales threshold. It lets the landlord share in a successful tenant's revenue. The lease defines which sales count, how they are reported, and whether the landlord may audit. Math questions often ask you to compute total rent.
- Exam tip
- Percentage rent is usually calculated on gross sales above the threshold, not on all sales or on net profit. Add the base rent to the overage.
- Example
- A store pays $2,000 monthly base rent plus 4% of sales over $50,000; with $80,000 in sales, rent is $2,000 + $1,200 = $3,200.
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Last verified: 2026-10-23