The percentage of gross sales payable to the landlord.
By Angel Campa, Founder · Updated March 2026
Percentage rent can add 2% to 8% of gross sales on top of base rent, dramatically increasing total occupancy cost for high-volume tenants. A restaurant doing $2 million in annual sales at a 6% percentage rent rate owes $120,000 in additional rent beyond the breakpoint. Failing to extract this rate means the financial model understates total lease cost by tens or hundreds of thousands of dollars annually.
Found in the "Percentage Rent" or "Additional Rent" section, common in retail leases. The rate, breakpoint, calculation methodology, reporting requirements, and audit provisions are typically grouped together.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the percentage rent rate from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Annual Base Rent
The total base rent payable for the first full lease year.
Payment Frequency
The interval at which rent is due.
Escalation Type
The methodology used to increase rent over the term.
Fixed Escalation %
The static percentage by which rent increases annually, if applicable.
CPI Index Used
The specific inflation index utilized for variable escalations.
Breakpoint Amount
The gross sales threshold that triggers percentage rent obligations.
Rates vary widely by retail category. Grocery stores typically pay 1-2%, general retail 4-7%, and restaurants 5-8%. Specialty tenants with high margins may pay 8-10%. The rate is always negotiated in context with the base rent and breakpoint.
Percentage rent is only owed on gross sales exceeding the "breakpoint" threshold. The natural breakpoint is calculated by dividing annual base rent by the percentage rate. For example, $120,000 base rent / 6% rate = $2,000,000 breakpoint. Percentage rent is owed on every dollar of sales above $2 million.
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