# Term for "Rent calculation according to store revenue"

Shopping centers and malls can institute a type of charge added to a base rent price. This charge is calculated -in most cases - based on the tenant's monthly revenue. In most cases the turnover charges will be calculated as a percentage of the store revenue.

For example, a store's monthly base rent is 8,000 dollars, but in addition there is a stipulation that the store needs to pay 10% of its revenue. If it sells \$100,000 one month, it needs to pay \$10,000 (and if it sells \$70,000 it needs to pay the base \$8,000).

What is the proper term for this stipulation, in American English?

Example sentence:

The rent is \$8,000, but together with this month's _________, \$10,000.

• Perhaps you could call it the pro-rata rent?
– IanS
Aug 31 '16 at 12:03
• @IanS - No. The term pro-rata refers to a partial payment for a partial usage, for example for starting or stopping service in the middle of a billing cycle. Aug 31 '16 at 15:14

## 2 Answers

It's a percentage lease if you refer to the complete amount that is due.

A lease that requires rent payments based on a percentage of the gross sales of the tenant. It is common with retail leases and food and beverage leases. Most contain a minimum payment clause so that if gross sales drop below a certain level the rent will be the minimum payment rather than a percentage of sales.

• A percentage lease is a lease in which the rental is calculated as a percentage of turnover. A lease which includes a "Turnover rental" clause is the most common lease in retail. The tenant pays whichever is higher between the base rental and the agreed percentage of turnover. Aug 31 '16 at 14:36
• @DanielGee - can you back this up with a source? Do you have personal experience in the matter?
– DAE
Feb 6 '17 at 8:03
• @Helmar this link suggests that a percentage lease is not always the entire rent, but can also be a supplement: propertymetrics.com/blog/2014/01/16/percentage-rent
– DAE
Feb 6 '17 at 8:13
• @DAE, no source, just personal experience. I work for a retailer which has around 450 stores. Feb 7 '17 at 1:21

In the property profession it's referred to as "turnover rental." A percentage lease would be a lease in which the rental is only based on a percentage of the turnover.