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What Is a Percentage Lease?

By Tara Mastroeni – Updated Feb 22, 2025 at 10:32AM

Key Points

  • Percentage leases involve paying landlords a portion of tenant profits, commonly in retail.
  • These leases include base rent and excess income shared after a set break-even point.
  • Negotiating a high break-even minimizes early percentage rent, benefiting new businesses.

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