Definition: The term "Base Rent" refers to the minimum rent due under the terms of a lease that also requires the tenant to pay additional rent based on a percentage or participation requirement. This type of lease is commonly executed in retail stores in malls.
For example, Karen's Kat Corner, a pet shop, may pay a base rent each month of $1,500. But her lease has a percentage rent requirement that she also pays, on top of the base rent, a small percent of all sales she makes each month over a certain set amount.
See, also "Percentage Lease" and "Average Percentage Rents Charged in Commercial Leases."
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