What is the structure called when a fixed minimum base rent is combined with a variable rent based on business volume?

The structure described is known as a percentage lease. In a percentage lease, the tenant pays a fixed base rent along with a variable component that is based on the business's revenue or volume. This type of lease arrangement aligns the interests of both the landlord and the tenant, as the landlord benefits when the tenant's business performs well. The fixed base rent provides the landlord with a guaranteed income stream, while the variable portion allows the tenant to manage their costs in relation to their business performance. This flexibility can be particularly appealing in retail environments where sales can fluctuate.

The other options do not accurately describe this particular arrangement. A fixed lease typically involves a set rental amount that does not change over time, lacking the variable component. A variable lease may imply some variation in rental amounts, but it does not specifically tie the variable portion to business volume. A commercial lease encompasses a broader category of leases used for business properties and does not specifically denote the combination of fixed and variable rent described. Thus, the percentage lease is the precise term for this scenario.