In a lease where the rent includes a fixed amount plus a percentage of sales, what is this called?

A lease that includes a fixed rent amount alongside a percentage of sales is referred to as a percentage lease. This type of lease is commonly used in retail settings where landlords allow tenants to pay a base rent supplemented by a percentage of the tenant's sales revenue. This arrangement benefits both parties; the landlord gains a share in the tenant's success while offering a potentially lower base rent, making the space more accessible for the tenant.

In comparison to other lease types: a flat lease involves a set rental amount without adjustments based on sales; a net lease typically requires the tenant to pay rent plus some or all utilities, property taxes, and insurance; and an operating lease is often related to equipment rental rather than real estate, where the lessor retains ownership risks. Each of these other lease types serves different purposes and structures of payments, making the percentage lease distinctive in its approach to linking rent to a tenant's performance.