Percentage Rent | Practical Law

Percentage Rent | Practical Law

Percentage Rent

Percentage Rent

Practical Law Glossary Item 2-502-7885 (Approx. 2 pages)

Glossary

Percentage Rent

In a commercial leasing context, an amount payable by a tenant in addition to the base rent. Percentage rent is typically based on a percentage of the tenant's sales in excess of a fixed base dollar amount, which is often referred to as the breakpoint. The breakpoint is the minimum amount of sales that must be generated at the leased premises before percentage rent is payable.
Percentage rent clauses are most commonly found in retail leases.