Calculations

Question 1

What is the formula to calculate gross sales subject to rent for a percentage lease?

Answer 1

Total gross sales - sales threshold

This formula determines the sales amount that will incur additional rent charges.

Question 2

How do you calculate additional annual rent in a percentage lease?

Answer 2

Gross sales subject to rent * percentage charge in lease

This calculation gives the amount of rent owed based on sales exceeding the threshold.

Question 3

What is the total annual rent in a percentage lease?

Answer 3

base rent + additional annual rent

This is the sum of the fixed base rent and any additional rent calculated from gross sales.

Question 4

What is the full process for calculating the rent owed for a percentage (overage) lease

Answer 4

1. Total gross sales - sales threshold = gross sales subject to rent
2. Gross sales subject to rent * percentage charge in lease = additional annual rent
3. base rent + additional annual rent = total annual rent

Question 5

What is the first step in calculating rent owed for a variable (index) lease?

Answer 5

Divide the new index by the original index

This step determines the adjustment factor for the rent based on index changes.

Question 6

What do you do after dividing the new index by the original index in an index lease?

Answer 6

Multiply the number from step one by the original rent

This gives the new rent amount based on the adjusted index.

Question 7

What is the full process for calculating the rent owed for a variable (index) lease

Answer 7

1. Divide the new index by the original index
2. multiply the number from step one by the original rent