The advantage for both commercial landlords and tenants using a percentage rent approach with a breakpoint is that the landlord can share in the tenant's success while the tenant pays a lower rental fee until its sales hit a predetermined level.

Question

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This statement is true. A percentage rent approach with a breakpoint allows landlords to receive a portion of the tenant's sales revenue once it exceeds a certain level, while tenants benefit from a lower rent fee until their sales meet the breakpoint.

The Advantage for Both Commercial Landlords and Tenants Using a Percentage