On a percentage lease, which of the following typically pays the highest percentage?

In a percentage lease, tenants pay a base rent plus a percentage of their gross sales, which incentivizes landlords to support their tenants' business growth. Retail stores typically pay the highest percentage because their income is directly tied to sales, making them prime candidates for this leasing structure. Retail businesses benefit from location and visibility, and landlords can capitalize on that by charging a higher percentage of sales.

While office spaces, garage and parking facilities, and warehouse facilities may incorporate varying lease structures, they do not usually operate on a percentage basis tied to sales performance to the extent that retail does. Office spaces generally have more stable, predictable income, garages prioritize usage over sales volume, and warehouses function based on storage and distribution needs rather than a sales-dependent model. This difference highlights why retail stores, with their direct sales revenue link to rental payments, typically result in a higher percentage paid in a percentage lease arrangement.