1. Assume a retail tenant is paying a base rent of $120,000 per year. In addition, the tenant must pay 10 percent of gross store sales in excess of $143,000 per month as percentage rent. If the store produces $170,000 in gross sales in a month, what is the percentage rent in that month? What is the total rent due for the month?
$12,000
$12,450
$10,000
$12,700
2. The choice of which method to use in constructing the contracted rental rate can also be impacted by the type of property being leased. With which of the following property types would one most expect to see a percentage rent method used?
Apartment
Office
Industrial
Retail