Property Management
A North Dakota commercial tenant holds a lease with a 'percentage rent' clause. This means the tenant pays:
AA fixed percentage of their annual income regardless of sales
BBase rent plus a percentage of sales above a specified breakpoint✓ Correct
CRent that is a percentage of the building's total value
DOnly a percentage of utilities consumed
Explanation
Percentage rent (common in retail leases) requires the tenant to pay base rent plus an additional percentage of gross sales that exceed a specified 'breakpoint' (natural or artificial). The landlord benefits from the tenant's business success.
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