Retail leases, both inside and outside shopping centers, commonly include percentage rent above a breakpoint. The breakpoint is high relative to sales when initial leases are signed. Percentage rents are higher for categories of stores with higher profit margins and lower volumes. These and...

Retail leases often include a constant percentage rent above a breakpoint. Most breakpoints are restricted to a natural breakpoint, calculated as base rent divided by percentage rent. Frequently, breakpoints are much greater than sales when leases are signed. Both within and across categories of...