Retail leases should be a partnership between landlord and tenant. One way to help achieve that relationship is percentage rent—a method of compensation in which the tenant pays a percent of annual gross sales to the landlord.
Typically found in large shopping centers, percentage rent can be used for all types of retail, including servicerelated businesses, and smaller properties like a convenience store or restaurant. To date, the rent structure is rare in Maine; but with continued expansion in the state’s retail market, the arrangement is expected to become more prominent. (Continued on PDF)