Property Management
A 'percentage lease' used in New York City retail properties typically requires the tenant to pay:
AA flat monthly rent regardless of sales
BA base rent plus a percentage of gross sales above a breakpoint✓ Correct
COnly a percentage of net profits
DRent equal to a fixed percentage of the property's appraised value
Explanation
A percentage lease requires the tenant to pay a base rent plus a percentage of gross sales above a specified breakpoint (natural or artificial). It is common in retail properties where the landlord participates in the tenant's business success.
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