Capture Gross Sales from All Tenants That Fill Specific Space
Gross sales clauses can be very lucrative for owners because they aren’t limited to collecting just base rent—the percentage of sales a tenant must hand over could potentially be more than its actual rent. But a problem crops up for you when other tenants use the named tenant’s space. You might not be able to collect a percentage of their sales—unless you’ve specified in the lease that you have the ability to do so.
More like this
- Don't Let Movie Theater Tenant Exclude Non-Ticket Sales from 'Gross Sales'
- Don't Let Drugstore Tenants Exclude Third-Party-Paid Drugs from Gross Sales
- Don't Let Electronics/Appliances Tenant Exclude Warranties, Services from Gross Sales
- Don't Give Licensee Exclusive Right to Use Specific Space for Set Term