Limit Snowball Effect of Boosting Base Rent with Percentage Rent

Owners of strip malls are always looking for ways to bring in more income. Unlike office building owners, they have the luxury of using methods other than base rent to make money. For example, percentage rent based on a tenant’s sales is a key method for collected more than base rent at shopping center and mall properties. Be on the lookout during negotiations for an owner that wants to overreach if you’ll be paying percentage rent and base rent.

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