Jerry Harris

[Jerry Harris]

Has anyone run across the term "Breakpoint" in reference to a commercial lease? I believe it pertains to recoveries or CAM but I am not able to find it defined in any references nor do I have a copy of the lease that it pertains to. Thanks!!

 

[PL1957]

Has anyone run across the term "Breakpoint" in reference to a commercial lease? I believe it pertains to recoveries or CAM but I am not able to find it defined in any references nor do I have a copy of the lease that it pertains to. Thanks!!

"Breakpoint" usually refers to the point where percentage rent becomes payable in a retail lease. Breakpoints can come in 2 flavors - fixed or natural.

 

[Michigan CG]

breakpoint
A method of calculating the level of retail sales over which a percentage rent is paid by the tenant; calculated as the base rent divided by the overall percentage rate. See also base rent; overage rent; percentage rent.

natural breakpoint
Calculated as the base rent divided by the percentage rate; an artificial breakpoint may be recorded in the lease. See also breakpoint.

 

[PL1957]

breakpoint
A method of calculating the level of retail sales over which a percentage rent is paid by the tenant; calculated as the base rent divided by the overall percentage rate. See also base rent; overage rent; percentage rent.

natural breakpoint
Calculated as the base rent divided by the percentage rate; an artificial breakpoint may be recorded in the lease. See also breakpoint.

That's not fair! I did mine of the top of my head - you cheated and looked it up!

 

[Michigan CG]

That's not fair! I did mine of the top of my head - you cheated and looked it up!

Did your mother tell you life is fair? If so, she lied to you!

I look up everything I can so that with enough looking up I will learn more....I had not heard natural break point for some time....learning experience.

 

[Mountain Man]

I thought breakpoint was when you had enough and cussed the lender out so badly that they went home crying.