Breakpoint (Percentage Rent)
A breakpoint is the sales level at which percentage rent begins to accrue under a percentage rent structure. A common "natural" breakpoint is computed by dividing annual base rent by the percentage rate, while other breakpoints may be negotiated.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Lease Negotiation
- Property types
- Retail
Related terms
Retail-Specific Leasing Terms
- Anchor Tenant
- Co-Tenancy Clause
- Exclusive Use Clause
- Go-Dark Provision
- Gross Sales (as Defined in Lease)
- In-Line Tenant
- Kick-Out Clause
- Percentage Rent
- Radius Restriction
General information, not legal, tax or financial advice.