Is a percentage rent clause better than a higher base rent for a new coffee shop opening in a busy urban retail corridor
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SEED QUERY
Is a percentage rent clause better than a higher base rent for a new coffee shop opening in a busy urban retail corridor
1 real search · 1 real-search pass
percentage rent clause retail lease natural breakpoint artificial breakpoint gross sales exclusions coffee shop tenant negotiationGoogle ↗
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ChatGPT1 real searches · gpt-6
percentage rent clause retail lease natural breakpoint artificial breakpoint gross sales exclusions coffee shop tenant negotiation Google ↗
- Percentage Rent: How it’s Calculated | Article · chambers.com
- Commercial Leasing Bulletin: Tenant Negotiating 101 - A Simple Guide to the Commercial Lease · mindengross.com
- A Primer on Percentage Rent | Insights · hklaw.com
- Practical guidance at Lexis Practice Advisor® · kbg-law.com
- designated percentage of such excess gross sales. Usually, a “natural breakpoint” is used, which is the amount of gross sales that, when multiplied by the applicable percentage, equals the amount of the annual fixed rent. For example, assume the applicable percentage is 5% and the annual fixed rent is $100,000. The provision would state that the tenant will pay percentage rent equal to 5% of the tenant’s gross sales over the natural breakpoint, which in this example would be $2,000,000 ($2,000,0 · kbg-law.com