Definition
Additional rent in a retail lease calculated as a percentage of tenant sales above a stated breakpoint.
Example
Percentage rent of 6% above a $2.4 million natural breakpoint added $34,000 to annual income.
Related terms
Frequently asked questions
What does Percentage Rent mean in real estate?
Additional rent in a retail lease calculated as a percentage of tenant sales above a stated breakpoint.
How is Percentage Rent used in practice?
Percentage rent of 6% above a $2.4 million natural breakpoint added $34,000 to annual income.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.