Property Management

A 'percentage lease' in commercial real estate means the tenant pays:

AA fixed rent regardless of business performance
BA base rent plus a percentage of gross sales revenues✓ Correct
CRent based on a percentage of net operating income
DOnly a percentage of operating expenses

Explanation

Under a percentage lease, the tenant pays a base rent plus a percentage of their gross sales revenues above a breakpoint. This is common in retail leases in shopping centers.

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