Property Management

In Tennessee, a 'percentage lease' in commercial real estate bases the rent on:

AA percentage of the property's appraised value
BA percentage of the tenant's gross sales, often with a minimum base rent✓ Correct
CA percentage of the landlord's operating costs
DA percentage of the market rent for similar properties

Explanation

A percentage lease charges rent based on the tenant's gross sales, usually above a minimum base rent. It is common in retail leasing, aligning the landlord's income with the tenant's business performance.

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