In a percentage lease, what does the tenant pay in addition to the base rent?

In a percentage lease, the tenant's payment structure typically includes a base rent plus an additional cost that is based on their sales revenue. This means that in addition to paying a fixed amount (the base rent), the tenant is obligated to pay a percentage of the sales they generate during the lease period. This arrangement allows landlords to benefit directly from the tenant's success, creating an incentive for both parties to promote the business and drive sales.

This type of lease is particularly common in retail settings, where sales volume can fluctuate significantly. It aligns the interests of the landlord and tenant, as the landlord has a vested interest in the tenant's performance. By basing additional rent on sales, the tenant may also benefit from lower fixed costs during slower sales periods.

Looking at the other options: A flat fee for maintenance, property taxes, and utility fees are typically considered separate expenses and do not specifically reflect the increased rent based on sales performance inherent in a percentage lease. These costs are often negotiated separately and do not fluctuate in relation to the tenant's sales figures.