Overage in leases for retail stores is the additional amount to be paid based on gross sales that exceed a predetermined threshold in addition to the base rent, often seen in percentage leases.
A percentage lease is a lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually includes a minimum base rental amount and is commonly used for retailers who are tenants.
Percentage rent is an additional rent under a percentage lease agreement, often applied to retail property tenants. It is calculated as a percentage of gross sales that exceed a pre-determined base amount or break point.
