Property Management
A NJ commercial tenant whose lease includes a 'percentage rent' clause pays:
AA flat percentage of the property's value annually
BBase rent plus a percentage of the tenant's gross sales above a specified breakpoint✓ Correct
COnly a percentage of net profits with no base rent
DA percentage of the landlord's operating costs
Explanation
Percentage rent is common in retail leases. The tenant pays a minimum base rent plus a percentage of gross sales above a natural or artificial breakpoint. This aligns the landlord's income with the tenant's business success and is typical in shopping centers and malls.
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