Property Management

In New Mexico, a commercial tenant on a percentage lease pays rent based on:

ASquare footage only
BA base rent plus a percentage of the tenant's gross sales above a breakpoint✓ Correct
CNet income of the business
DThe appraised value of the property

Explanation

A percentage lease charges a base rent plus a percentage of gross sales above a natural breakpoint (base rent / percentage rate). Common in retail — the landlord participates in the tenant's business success.

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