New Hampshire Shopping Center Lease Agreement - percentage rent option

• Category: Landlord Tenant - Commercial Leases - Shopping Centers
• State: Multi-State
• Control #: US-808LT
• Format: Word; Rich Text

Description

Detailed lease for store space within a shopping center, with an option for rent as a percentage of gross sales. A New Hampshire Shopping Center Lease Agreement with a percentage rent option is a legally binding contract between a landlord and a tenant renting a commercial space within a shopping center in New Hampshire. This agreement provides for a rent structure that includes a base rent as well as an additional payment based on a percentage of the tenant's gross sales or revenue. The percentage rent option is a popular choice among shopping center landlords as it allows them to benefit from the success of their tenants. It incentivizes tenants to drive high sales and customer traffic, as the more they earn, the more they pay. This arrangement ensures that the landlord shares in the tenant's success and profitability. There are various types of New Hampshire Shopping Center Lease Agreement — percentage rent options available, depending on the specific terms and conditions negotiated between the landlord and the tenant. Some common types include: 1. Graduated Percentage Rent: This type of agreement sets forth varying percentage rates based on the tenant's gross sales or revenue benchmarks. As the tenant's sales increase, the percentage rent increases accordingly. For example, the rate may start at 2% for sales under $100,000, then increase to 3% for sales between $100,000 and $200,000, and so on. 2. Natural Breakpoint Percentage Rent: In this scenario, the landlord and tenant agree on a set sales threshold, known as a "breakpoint." Once the tenant's sales surpass this amount, the percentage rent kicks in. The percentage rate may remain constant beyond the breakpoint or increase at certain intervals. 3. Overage Percentage Rent: This type of agreement allows the tenant to pay a lower base rent but imposes a higher percentage rent once the tenant's sales exceed a specific threshold. The overage percentage rent is calculated only on the portion of sales that exceed the threshold. 4. Minimum Rent with Percentage Rent: Under this arrangement, the tenant pays a minimum base rent regardless of their sales performance. However, if the tenant's sales exceed a certain amount, they are also obligated to pay the landlord a percentage rent on top of the base rent. These are just a few examples of the different types of New Hampshire Shopping Center Lease Agreement — percentage rent options available. The specific terms, including the percentage rate, breakpoint, minimum base rent, and other details, would be defined and agreed upon between the landlord and tenant during the negotiation process. It is important for both parties to clearly understand and document these terms to ensure a fair lease agreement that benefits both the tenant and landlord.

A New Hampshire Shopping Center Lease Agreement with a percentage rent option is a legally binding contract between a landlord and a tenant renting a commercial space within a shopping center in New Hampshire. This agreement provides for a rent structure that includes a base rent as well as an additional payment based on a percentage of the tenant's gross sales or revenue. The percentage rent option is a popular choice among shopping center landlords as it allows them to benefit from the success of their tenants. It incentivizes tenants to drive high sales and customer traffic, as the more they earn, the more they pay. This arrangement ensures that the landlord shares in the tenant's success and profitability. There are various types of New Hampshire Shopping Center Lease Agreement — percentage rent options available, depending on the specific terms and conditions negotiated between the landlord and the tenant. Some common types include: 1. Graduated Percentage Rent: This type of agreement sets forth varying percentage rates based on the tenant's gross sales or revenue benchmarks. As the tenant's sales increase, the percentage rent increases accordingly. For example, the rate may start at 2% for sales under $100,000, then increase to 3% for sales between $100,000 and $200,000, and so on. 2. Natural Breakpoint Percentage Rent: In this scenario, the landlord and tenant agree on a set sales threshold, known as a "breakpoint." Once the tenant's sales surpass this amount, the percentage rent kicks in. The percentage rate may remain constant beyond the breakpoint or increase at certain intervals. 3. Overage Percentage Rent: This type of agreement allows the tenant to pay a lower base rent but imposes a higher percentage rent once the tenant's sales exceed a specific threshold. The overage percentage rent is calculated only on the portion of sales that exceed the threshold. 4. Minimum Rent with Percentage Rent: Under this arrangement, the tenant pays a minimum base rent regardless of their sales performance. However, if the tenant's sales exceed a certain amount, they are also obligated to pay the landlord a percentage rent on top of the base rent. These are just a few examples of the different types of New Hampshire Shopping Center Lease Agreement — percentage rent options available. The specific terms, including the percentage rate, breakpoint, minimum base rent, and other details, would be defined and agreed upon between the landlord and tenant during the negotiation process. It is important for both parties to clearly understand and document these terms to ensure a fair lease agreement that benefits both the tenant and landlord.