Contra Costa California Shopping Center Lease Agreement — Percentage Rent Option is a specific provision found in lease agreements for retail spaces in shopping centers located in Contra Costa County, California. This option allows tenants to pay a base rent along with an additional percentage of their gross sales revenue. The percentage rent option is an advantageous feature for both tenants and shopping center owners. It allows tenants to have some flexibility in their rent payments as it is directly tied to the success of their business. Landlords benefit from this provision by receiving additional income when the tenant's sales exceed a certain threshold. There are different types of percentage rent options that can be included in a Contra Costa California Shopping Center Lease Agreement. Some common types include: 1. Graduated Percentage Rent: This option specifies a gradual increase in the percentage paid by the tenant as their sales revenue grows. For example, the percentage may be set at 4% for sales up to $500,000, then increase to 6% for sales between $500,001 and $1,000,000, and so on. 2. Step-Up Percentage Rent: This option features predetermined steps or thresholds where the percentage rate increases at certain sales intervals. For instance, the percentage could start at 3% for sales up to $500,000, then increase to 5% for sales between $500,001 and $1,000,000, and further increase to 7% for sales over $1,000,000. 3. Sliding Scale Percentage Rent: This option calculates the percentage based on a sliding scale that adjusts according to the tenant's sales revenue. The higher the sales, the higher the percentage applied to the overage amount. It provides more flexibility to tenants with variable sales volumes. 4. Seasonal Percentage Rent: This option is suitable for businesses that experience significant fluctuations in sales throughout the year due to seasonal demand. It allows for a customized percentage rent structure to accommodate the varying sales patterns during different seasons. These different types of percentage rent options within the Contra Costa California Shopping Center Lease Agreement aim to create a fair and balanced relationship between tenants and landlords. They provide tenants with an opportunity to lower their upfront costs and share in the success of their business while landlords can potentially increase their return on investment by earning additional income from successful tenants.