Property Management

In South Dakota, a 'percentage lease' in commercial real estate requires the tenant to pay:

AA percentage of the property's market value as rent
BA base rent plus a percentage of the tenant's gross sales above a specified threshold✓ Correct
CRent equal to a percentage of the operating expenses
DA fixed percentage of other tenants' rents in the building

Explanation

A percentage lease is commonly used in retail settings. The tenant pays a base rent plus a percentage of their gross sales revenues when sales exceed a specified threshold (the 'breakpoint'). This gives landlords a share of successful tenants' revenues.

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