Property Management
A percentage lease commonly used in retail real estate requires the tenant to pay:
AA percentage of the building's assessed value as rent
BA base rent plus a percentage of the tenant's gross sales above a specified breakpoint✓ Correct
CRent equal to a percentage of the net operating income
DOnly a percentage of gross sales with no base rent component
Explanation
A percentage lease requires the tenant to pay a base rent plus a percentage of gross sales above a specified 'breakpoint' (minimum sales level). This is common in shopping centers and retail strips because it ties the landlord's income to the tenant's business success.
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