California Percentage Shopping Center Lease Agreement

• Category: Landlord Tenant - Commercial Leases - Shopping Centers
• State: Multi-State
• Control #: US-01626
• Format: Word; Rich Text

Description

This form is for the lease of property to be used as a shopping center. The landlord warrants that the demised premises may be used, but not limited to such use, by tenant, among others, for the conduct of a mercantile business of the type and kind known as a variety store, discount store, dollar store or variety discount store. The California Percentage Shopping Center Lease Agreement is a legal document that outlines the terms and conditions agreed upon between a landlord (usually the owner or manager of a shopping center) and a tenant, for leasing a retail space within a shopping center located in the state of California. This agreement specifically focuses on the use, occupancy, and operation of the tenant's business within the premises. In this type of lease agreement, the tenant pays a percentage of their monthly sales revenue as rent, in addition to a base rent or minimum rent. The percentage rent serves as an incentive for the landlord, as it allows them to share in the tenant's success if their business thrives. This agreement is commonly used in shopping centers and malls where foot traffic and the potential for sales are high. The California Percentage Shopping Center Lease Agreement contains detailed provisions regarding the premises, duration of the lease, renewal options, rent structure, and operating expenses. It may also cover provisions related to tenant improvements, hours of operation, exclusivity clauses, maintenance responsibilities, and signage rights. Different types of California Percentage Shopping Center Lease Agreements exist, each reflecting the specific needs and circumstances of the shopping center and the tenant. Some variations are: 1. Gross percentage lease: This type of lease agreement requires the tenant to pay a percentage of their sales as rent, in addition to a fixed monthly basis rent. The tenant's percentage rent is calculated on the total sales, without deducting certain expenses like taxes. 2. Net percentage lease: Unlike a gross percentage lease, a net percentage lease requires the tenant to pay their percentage rent after deducting certain expenses, such as property taxes, insurance, and common area maintenance fees, from their gross sales revenue. 3. Step-up lease: This lease agreement involves a gradual increase in the base rent over a specific period. It may increase annually, biannually, or at predetermined intervals mentioned in the agreement. The percentage rent may or may not be subject to the step-up provision. 4. Sales breakpoint lease: In this type of lease, a specific sales threshold (breakpoint) is set. Once the tenant's sales revenue surpasses this threshold, the tenant becomes liable to pay a higher percentage rent. The California Percentage Shopping Center Lease Agreement plays a crucial role in ensuring a fair and mutually beneficial relationship between tenants and landlords, promoting the success of businesses within the shopping center while protecting the interests of all parties involved. It is essential for both landlords and tenants to thoroughly review and understand the terms and conditions of the lease agreement before signing, while seeking legal counsel if necessary.

The California Percentage Shopping Center Lease Agreement is a legal document that outlines the terms and conditions agreed upon between a landlord (usually the owner or manager of a shopping center) and a tenant, for leasing a retail space within a shopping center located in the state of California. This agreement specifically focuses on the use, occupancy, and operation of the tenant's business within the premises. In this type of lease agreement, the tenant pays a percentage of their monthly sales revenue as rent, in addition to a base rent or minimum rent. The percentage rent serves as an incentive for the landlord, as it allows them to share in the tenant's success if their business thrives. This agreement is commonly used in shopping centers and malls where foot traffic and the potential for sales are high. The California Percentage Shopping Center Lease Agreement contains detailed provisions regarding the premises, duration of the lease, renewal options, rent structure, and operating expenses. It may also cover provisions related to tenant improvements, hours of operation, exclusivity clauses, maintenance responsibilities, and signage rights. Different types of California Percentage Shopping Center Lease Agreements exist, each reflecting the specific needs and circumstances of the shopping center and the tenant. Some variations are: 1. Gross percentage lease: This type of lease agreement requires the tenant to pay a percentage of their sales as rent, in addition to a fixed monthly basis rent. The tenant's percentage rent is calculated on the total sales, without deducting certain expenses like taxes. 2. Net percentage lease: Unlike a gross percentage lease, a net percentage lease requires the tenant to pay their percentage rent after deducting certain expenses, such as property taxes, insurance, and common area maintenance fees, from their gross sales revenue. 3. Step-up lease: This lease agreement involves a gradual increase in the base rent over a specific period. It may increase annually, biannually, or at predetermined intervals mentioned in the agreement. The percentage rent may or may not be subject to the step-up provision. 4. Sales breakpoint lease: In this type of lease, a specific sales threshold (breakpoint) is set. Once the tenant's sales revenue surpasses this threshold, the tenant becomes liable to pay a higher percentage rent. The California Percentage Shopping Center Lease Agreement plays a crucial role in ensuring a fair and mutually beneficial relationship between tenants and landlords, promoting the success of businesses within the shopping center while protecting the interests of all parties involved. It is essential for both landlords and tenants to thoroughly review and understand the terms and conditions of the lease agreement before signing, while seeking legal counsel if necessary.