Percentage Rent

Rent payable under a Percentage Lease. Typically the percentage applies to sales in excess of a pre-established base amount of the dollar sales volume. Percentage rents in a shopping center vary typically from less than 1% for a supermarket to more than 7% for a jewelry store. Apparel stores and gift shops typically pay from 3 to 6% of sales.

Rent payable under a Percentage Lease. Typically the percentage applies to sales in excess of a pre-established base amount of the dollar sales volume.
Examples: Typical percentage rents in a neighborhood Shopping Center are shown in Table 38.

Table 38 Typical Percentage Rents

Card & gift shop 5.0 to 8.0%

Drugstore 2.5 to 4.0%

Liquor and wine shop 1.5 to 5.0%

Pet shop 5.0 to 8.0%

Restaurant 4.0 to 7.0%

Supermarket 1.0 to 2.0%

Adapted from Dollars & Cents of Shopping Centers, Urban Land Institute, Washington, D.C.