Hawaii 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. Hawaii Percentage Shopping Center Lease Agreement: A Comprehensive Explanation + Types Introduction to Hawaii Percentage Shopping Center Lease Agreement: The Hawaii Percentage Shopping Center Lease Agreement is a legal contract entered into by a property owner or landlord, referred to as the lessor, and a retail business owner or tenant, known as the lessee. This agreement outlines the terms and conditions for leasing a commercial space within a shopping center located in Hawaii. The key feature of this lease agreement is the inclusion of a percentage rent clause, which allows the landlord to receive a percentage of the tenant's gross sales in addition to the base rent. Key Components of the Hawaii Percentage Shopping Center Lease Agreement: 1. Rent Structure: The agreement specifies the overall rent structure, including the base rent amount, which is often fixed, and the percentage rent. The percentage rent is calculated based on a predetermined percentage of the tenant's gross sales above a previously agreed upon breakpoint. 2. Breakpoint: The breakpoint refers to the minimum level of sales that the tenant must achieve before the percentage rent applies. This threshold acts as a protective measure for the tenant, ensuring that they only pay additional rent if their sales exceed a certain level. 3. Reporting and Auditing: The lease agreement includes provisions for the tenant to provide regular sales reports to the landlord, documenting the gross sales figures. The landlord may also have the right to audit the tenant's financial records to validate the accuracy of reported sales. 4. Lease Term and Renewal: The agreement outlines the initial lease term, which is typically a fixed number of years, as well as any renewal provisions allowing for an extension of the lease agreement upon the mutual agreement of both parties. 5. Common Area Maintenance (CAM) Charges: The tenant is usually responsible for paying a pro rata share of common area maintenance charges, covering the upkeep and maintenance of shared spaces within the shopping center, such as parking lots, walkways, and restrooms. Types of Hawaii Percentage Shopping Center Lease Agreements: 1. Gross Percentage Lease: In this type of lease, the tenant pays a base rent amount plus a percentage of gross sales above the breakpoint. The landlord is responsible for covering all expenses related to property taxes, insurance, maintenance, and utilities. 2. Net Percentage Lease: Unlike the gross percentage lease, the net percentage lease requires the tenant to contribute to the payment of a portion of the property expenses in addition to the base rent and percentage rent. These expenses may include property taxes, insurance, maintenance, and utilities. Conclusion: The Hawaii Percentage Shopping Center Lease Agreement is a specialized commercial lease that includes a percentage rent clause. It enables both landlords and tenants to share the risks and rewards of the tenant's business performance within a shopping center environment. By understanding the key components and types of this lease agreement, both parties can negotiate fair and beneficial terms that cater to their specific needs and objectives.

Hawaii Percentage Shopping Center Lease Agreement: A Comprehensive Explanation + Types Introduction to Hawaii Percentage Shopping Center Lease Agreement: The Hawaii Percentage Shopping Center Lease Agreement is a legal contract entered into by a property owner or landlord, referred to as the lessor, and a retail business owner or tenant, known as the lessee. This agreement outlines the terms and conditions for leasing a commercial space within a shopping center located in Hawaii. The key feature of this lease agreement is the inclusion of a percentage rent clause, which allows the landlord to receive a percentage of the tenant's gross sales in addition to the base rent. Key Components of the Hawaii Percentage Shopping Center Lease Agreement: 1. Rent Structure: The agreement specifies the overall rent structure, including the base rent amount, which is often fixed, and the percentage rent. The percentage rent is calculated based on a predetermined percentage of the tenant's gross sales above a previously agreed upon breakpoint. 2. Breakpoint: The breakpoint refers to the minimum level of sales that the tenant must achieve before the percentage rent applies. This threshold acts as a protective measure for the tenant, ensuring that they only pay additional rent if their sales exceed a certain level. 3. Reporting and Auditing: The lease agreement includes provisions for the tenant to provide regular sales reports to the landlord, documenting the gross sales figures. The landlord may also have the right to audit the tenant's financial records to validate the accuracy of reported sales. 4. Lease Term and Renewal: The agreement outlines the initial lease term, which is typically a fixed number of years, as well as any renewal provisions allowing for an extension of the lease agreement upon the mutual agreement of both parties. 5. Common Area Maintenance (CAM) Charges: The tenant is usually responsible for paying a pro rata share of common area maintenance charges, covering the upkeep and maintenance of shared spaces within the shopping center, such as parking lots, walkways, and restrooms. Types of Hawaii Percentage Shopping Center Lease Agreements: 1. Gross Percentage Lease: In this type of lease, the tenant pays a base rent amount plus a percentage of gross sales above the breakpoint. The landlord is responsible for covering all expenses related to property taxes, insurance, maintenance, and utilities. 2. Net Percentage Lease: Unlike the gross percentage lease, the net percentage lease requires the tenant to contribute to the payment of a portion of the property expenses in addition to the base rent and percentage rent. These expenses may include property taxes, insurance, maintenance, and utilities. Conclusion: The Hawaii Percentage Shopping Center Lease Agreement is a specialized commercial lease that includes a percentage rent clause. It enables both landlords and tenants to share the risks and rewards of the tenant's business performance within a shopping center environment. By understanding the key components and types of this lease agreement, both parties can negotiate fair and beneficial terms that cater to their specific needs and objectives.