Percentage Rent
Extra rent owed when sales exceed a breakpoint, common in retail and some restaurant leases.
Last updated September 5, 2026
Percentage rent is a share of gross sales above a threshold, paid in addition to or sometimes in place of a portion of base rent. Definitions of “sales,” exclusions (gift cards, delivery platforms), and reporting duties are in the lease. Growth can raise rent just as the buyer hoped to improve cash flow. Model percentage rent in DSCR, not only the current year’s invoice.