Lima Arizona Shopping Center Lease Agreement ā Percentage Rent Option A Lima Arizona Shopping Center Lease Agreement with a percentage rent option refers to a legal contract between a landlord and a tenant in a shopping center located in Lima, Arizona. This type of lease agreement includes a unique clause that allows the tenant to pay a percentage of their sales as rent along with a base rent. The percentage rent option is primarily designed to align the interests of the tenant and the landlord, as it ensures that the rent paid by the tenant is directly proportional to their business performance. This agreement is commonly seen in retail spaces within shopping centers, allowing tenants to take advantage of a prime location and the overall foot traffic generated. Different Types of Lima Arizona Shopping Center Lease Agreement ā Percentage Rent Option: 1. Gross Sales Percentage Rent: This type of percentage lease agreement calculates the tenant's rent based on their gross sales revenue generated within the shopping center. Typically, there is a predetermined percentage, which can vary from agreement to agreement, that is multiplied by the tenant's gross sales to determine the additional rent owed. 2. Excess Over a Base Rent Percentage Rent: In this type of agreement, the tenant pays a base rent amount in addition to a percentage of their sales exceeding a predetermined threshold. For example, if the tenant's gross sales exceed a certain threshold, the landlord may require them to pay a percentage of the sales exceeding that threshold. 3. Cumulative Sales Percentage Rent: This lease agreement type involves the tenant paying a percentage of their sales revenue, which accumulates over time. The agreed-upon percentage may increase as the cumulative sales exceed predetermined thresholds, allowing the landlord to benefit from the success and growth of the tenant's business. 4. Step-Up Percentage Rent: In a step-up percentage rent lease agreement, the percentage paid by the tenant increases gradually over a specified period. For instance, the percentage rent might start at a lower rate for the initial years and then incrementally increase each subsequent year, encouraging the tenant to continually improve their business. In conclusion, a Lima Arizona Shopping Center Lease Agreement with a percentage rent option provides both the landlord and the tenant with a mutually beneficial arrangement. The tenant has the opportunity to pay rent based on their actual sales, while the landlord can benefit from the tenant's successful business operations. Different types of percentage rent options exist, including gross sales percentage rent, excess over a base rent percentage rent, cumulative sales percentage rent, and step-up percentage rent.
Para su conveniencia, debajo del texto en espaƱol le brindamos la versiĆ³n completa de este formulario en inglĆ©s. For your convenience, the complete English version of this form is attached below the Spanish version.