Additional Rent refers to the amounts of rent that are due above the minimum or base rent. This covers a variety of potential extra charges that a tenant may be responsible for, depending on the lease agreement.
Base rent is the minimum rent due under a lease that has a percentage or participation requirement.
Occupancy Costs (Total) refers to a tenant's cumulative rent expense, generally including base rent, percentage rent, and additional charges. This key metric is pivotal for retail businesses in assessing the affordability and profitability of a given commercial space.
Overage Rent, also known as Percentage Rent, is an additional rent payment that tenant retailers pay to their landlords based on a percentage of their sales over a specified base amount. Often used in shopping centers or retail spaces, it helps landlords share in the tenant’s success.
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.
