Property Management
What is 'percentage rent' in a commercial lease arrangement in Delaware?
AA rent equal to a percentage of the property's assessed value
BA base rent plus a percentage of the tenant's gross sales above a specified threshold✓ Correct
CA rent that increases by a fixed percentage each year
DA rent that is a percentage of the market rent for comparable properties
Explanation
Percentage rent in a retail commercial lease allows the landlord to participate in the tenant's success by charging base rent plus an additional percentage of the tenant's gross sales above a breakpoint threshold.
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