09/22/2026
š¬ What Is Percentage Rent in Commercial Real Estate?
Percentage rent is a lease structure commonly used in retail where a tenant pays a base rent, plus a percentage of sales once revenue exceeds an agreed-upon breakpoint.
Depending on the lease, that additional rent may be paid monthly as sales are reported or reconciled at the end of the year.
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This information is for educational purposes only and is not intended as legal, tax, or financial advice. Lease terms vary, and parties should consult the appropriate professionals regarding their specific situation.