Property Management

A Florida commercial tenant is on a percentage lease in a retail shopping center. Their lease requires a base rent of $2,000/month plus 4% of gross sales over $500,000 annually. If annual gross sales are $700,000, what is the annual percentage rent overage?

A$28,000
B$8,000✓ Correct
C$20,000
D$4,000

Explanation

Overage = (Gross Sales − Breakpoint) × Percentage = ($700,000 − $500,000) × 4% = $200,000 × 0.04 = $8,000.

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