Lake Hudson Topics: Catherine's

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	Name:	water_watcher -
	Subject:	Catherine's
	Date:	1/5/2009 6:57:12 AM

in your example that is 3.5% and would be a very realistic amount for percentage rent from first dollar. Many retail rent deals have a fixed amount and a percentage amount "after a certain dollar level" - typically 5 or 6%. Since they did not know the expected revenue level, then 3.5% on all revenue would be realistic. A bit low actually, but who knows if there are escalators each year or maybe a hhigher level in the summer.