How ‘percentage rent’ can be a bargaining tool in commercial leases

Recently, I negotiated a lease that required the tenant to pay percentage rent.
What’s that, you ask? Let me explain …
Typically, tenants reject the notion of percentage rent. In my recent negotiation, I was able to use the concept to our advantage in order to get more favorable lease terms. Over the years, I have learned that many small business owners misunderstand how percentage rent works when leasing retail space.
Percentage rent, when factored into lease payments, may never en