Property Management
In Minnesota, a commercial tenant who has a percentage lease pays rent based on:
AThe square footage of the leased space only
BA base rent plus a percentage of the tenant's gross sales above a certain threshold✓ Correct
CA flat monthly rate unrelated to sales
DThe property's assessed value
Explanation
A percentage lease is common in retail properties. The tenant pays a minimum base rent plus a percentage of their gross sales above a breakeven point (natural breakpoint). This structure is common in Minnesota shopping centers where the landlord benefits from the tenant's success.
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