Property Management

What is a percentage lease and where is it typically used?

AA lease where rent is a percentage of the property value
BA commercial lease where rent includes a base plus a percentage of the tenant's gross sales✓ Correct
CA lease with annual percentage rent increases
DA lease discounted by a percentage for long-term tenants

Explanation

A percentage lease, common in retail settings, requires the tenant to pay a base rent plus a percentage of their gross sales above a breakpoint. This aligns landlord and tenant interests and is typical in shopping centers.

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