Last week at a triple net lease property near Phoenix I changed my mind about percentage rent clauses

I was walking through an old strip mall with a tenant who runs a laundromat, and he showed me how his percentage rent clause actually kicked in after he upgraded his machines. The landlord never noticed the higher sales because he never audited the books, but the tenant told me he actually paid more voluntarily to keep the space. Has anyone else seen a situation where a tenant pushed for a percentage rent clause instead of fighting it?

2 comments

2 Comments

leog681d ago

My buddy's pizza shop in Mesa hit their percentage cap last summer and they actually asked to renew with a higher base rent.

the_brooke1d ago

Got a bad guesstimate once and learned that math isn't my strong suit.