Breakpoint Lease Agreements

This is sometimes called „skip“, since part of the gross turnover against which the rent percentage is calculated is „skipped“, that is to say between 1 million and 1.25 million dollars. Landlords and tenants negotiate a „breaking point,“ the amount of sales for which percentage rents are tied to base rent. If a landlord accepts a lower base rent, they also want a lower stop. The tenant is interested in a low base rent and a high stop. After going back and forth and establishing these two figures, both parties must, among other things, establish exclusions for the number of sales (e.g.B. sales to company employees), the hours of operation of the activity, the right to change the breakpoint, and the procedures for reviewing in-store sales. . . .