Property Management

A Spokane commercial landlord wants to include a percentage rent clause in a retail lease. This type of clause requires the tenant to pay:

AA fixed rent plus a percentage of the landlord's operating costs
BBase rent plus a percentage of the tenant's gross sales above a breakpoint✓ Correct
CRent that increases by a fixed percentage each year
DA rent reduction percentage if occupancy falls below 85%

Explanation

A percentage rent clause is common in retail leases and requires the tenant to pay base rent plus a percentage of gross sales that exceed a specified natural or artificial breakpoint, allowing landlords to share in the tenant's success.

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