Property Management

An Iowa commercial tenant's lease provides for a fixed base rent plus a percentage of the tenant's gross sales above a specified amount. This is called a:

ANet lease
BGross lease
CPercentage lease✓ Correct
DGround lease

Explanation

A percentage lease requires the tenant to pay a fixed minimum rent plus a percentage of gross sales exceeding a breakpoint. It is common in retail commercial leases in Iowa shopping centers.

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