Under a percentage lease, what is the fixed portion of the rent called?

In the context of a percentage lease, the fixed portion of the rent is referred to as the minimum base rent. This term denotes the guaranteed amount that the tenant agrees to pay, regardless of their sales performance. The structure of a percentage lease typically involves two components: the minimum base rent and a variable rent, which is contingent upon a percentage of the tenant's sales volume. By having a minimum base rent, the landlord ensures a consistent level of income from the lease, while the variable component allows them to benefit from the tenant’s success. Understanding this distinction is crucial for navigating lease agreements and calculating potential revenue from commercial properties.