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
  • 1
    @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.
    – cobaltduck
    Aug 31 '16 at 15:14

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.
    – Daniel Gee
    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.
    – Daniel Gee
    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.


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