The choice of which method to use in constructing the contracted rental rate can also be impacted by the type of property being leased.With which of the following property types would one expect to see a percentage rent method used?
A)Apartment
B)Office
C)Industrial
D)Retail

Question

Quizplus · Accepted Answer

The percentage rent method is typically used in retail property leasing, where the tenant's rental payments are calculated as a percentage of the tenant's gross sales. This method provides a level of protection for the landlord by ensuring a minimum rent level, while allowing the tenant to pay more if their sales increase.

The Choice of Which Method to Use in Constructing the Contracted