Posted by Natalie-VA on June 15, 2006 at 10:37:57:
Leonard,
It’s typically called a “Percentage Lease”. It can be based totally on revenues, or it can have a base rent plus a percentage of revenues.
Sorry, I can’t help any further since I have zero experience with this. You might try the commercial forum.
–Natalie
Lease with Profit Sharing - Posted by Leonard
Posted by Leonard on June 14, 2006 at 17:47:53:
Hi all!,
Is there a type of lease that includes a percentage of profits as part of the lease payment? In other words, someone is leasing commercial space to a business and in addition to a base rent there is also a percentage of the business’ profit as payment.
Does this exist and if so what is this type of lease called? The reason for my inquiry is that I have an opportunity to lease space to a health care operation. The numbers look good for the operation and I can be a partner if I chose to.
I would like to participate in the profits without being as close as an actual legal partner if at all possible. I want to minimize my liability exposure and also the scrutiny/hassle by the state and federal government matrix that will also be involved.
Any thoughts or comments are appreciated.