Leasing Definitions - What Does "Percentage Lease" Mean?
Glossary of Commercial Leasing Terms
Definition: A Percentage Lease typically requires a tenant to pay "Base Rent" and then on top of that amount, the tenant also pays a percentage based on monthly sales volumes. Percentage leases are commonly executed in retail mall outlets and other commercial retail leases.
Percentage leases should not take a percentage of all sales made, but should include a percentage paid to the landlord (lessor) only when a tenant has made a certain amount in any given month.
For example, a percentage lease might require a tenant to pay 5% of all sales that exceed more than $25,000 in any given month.
Also see, "Base Rent" and "Average Percentage Rents Charged in Commercial Leases."
- Double Net Lease
- Triple Net Lease
- Net Lease
- Fully Serviced Lease
- Rentable Square Feet
- Usable Square Feet
- Load Factor
Also Known As: Percent Lease; Percentage Leasing; Retail Lease; Participation Lease