Percentage rent is used in retail leases where the landlord has bargaining power to demand a share of the tenant's economic gains.

Demand for retail space may be high or a landlord's specific location may be particularly attractive such that the tenant is willing to pay not only a fixed amount of rent but a share of its gross revenue. These types of leases require a sophisticated understanding of the underlying economics of tenant's business. These leases also require very careful drafting.

• How is gross revenue defined?
• Is there a minimum amount or a maximum amount?
• How are these numbers verified?
• And what are all the related protections for the landlord or the tenant?

This program provides a practical guide to negotiating and drafting percentage leases.

• Circumstances where percentage rent is commonly seen
• Economics of percentage rent – landlord and tenant perspectives
• Defining key terms – "gross sales," exclusions, percent of rent
• Determining thresholds – minimum rent, sliding scales
• Financial reporting and audit rights
• Important related provisions – non-competition, continuous use, payment terms

DETAILS
Phone/Audio
Thursday, July 14, 2022
1:00–2:00 PM

SPEAKERS

• Richard R. Goldberg, Ballard Spahr LLP, Philadelphia, PA
• John S. Hollyfield, Norton Rose Fulbright LLP, Houston, TX

PRODUCED
July 14, 2022

APPROVED CREDIT
North Carolina: 1.00 MCLE Hour

PROGRAM PRICING
See pricing below.