In the context of a lease,percentage rents generally indicate that:

Question

Quizplus · Accepted Answer

Percentage rents in the context of a lease generally mean that the lessor will receive a percentage of the tenant's cash flow above a certain break-even point in addition to a base rent. This is often seen in retail leases, where the tenant's sales revenue may be a good indicator of their ability to pay rent. Option A is incorrect because it refers to "proportionate rent" instead of "percentage rent." Option C is incorrect because there is no such thing as a "national average" for rent in this context. Option D is incorrect because one of the options is correct.

In the Context of a Lease,percentage Rents Generally Indicate That