Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Percentage Lease

A percentage lease is a retail commercial lease where the tenant pays base rent plus a percentage of gross sales above a defined breakpoint, aligning landlord income with store performance and common in shopping centers anchored by national tenants.

Exam context

Percentage lease adds rent based on sales over breakpoint. Gross lease fixed rent. Net lease passes expenses. Breakpoint is sales level where percentage rent begins.

Rent formula

Leases specify minimum base rent and a percent of sales over a breakpoint. Natural breakpoints occur where percentage rent equals base rent divided by the stated percent. Tenants report sales monthly or annually; landlords audit records. Caps and exclusions for returns or online sales may apply in modern leases.

Location strategy

Landlords accept lower base rent for percentage upside in high-traffic malls. Tenants with volatile sales negotiate higher breakpoints or lower percentages. Agents representing retailers model total occupancy cost including CAM and percentage rent before site selection.

Examples

  • 5% over breakpoint

    A tenant pays $120,000 base rent and 5% of gross sales exceeding $2.4 million. At $2.7 million sales, percentage rent adds $15,000 for the year.

  • Natural breakpoint

    With $96,000 base rent and 6% percentage rent, the natural breakpoint is $1.6 million in sales where percentage rent would equal base rent if sales reached that level.

Keep studying

Practice percentage lease questionsEnroll in pre-licensing

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