Which term refers to a combination of fixed rent and a percentage of gross sales?

The term that describes a combination of fixed rent and a percentage of gross sales is known as a percentage lease. This type of lease is commonly utilized in commercial real estate, especially in retail spaces, where landlords want to benefit from the tenant’s sales performance.

In a percentage lease, the tenant pays a base rent, which provides the landlord with a guaranteed income, while also paying a specified percentage of their gross sales that exceed a predetermined threshold. This structure aligns the interests of both parties, as it allows the landlord to share in the success of the business by benefiting from higher sales.

The other lease types do not incorporate both elements of fixed rent and a percentage of sales. A base lease refers to a standard rental agreement without these additional sales-based terms. A flexible lease typically refers to a lease that can be adjusted or renegotiated often, but does not specifically indicate a percentage of sales involved. The term hybrid lease may suggest a combination of various lease characteristics, but it is not specifically recognized for involving fixed rent plus a percentage of gross sales in the way a percentage lease is.