base rent

Definition

An amount that is used as a minimum rent, providing for rent increases over the term of the lease agreement. The base rent is the initial rent, and depending on the lease provisions it may change over the term of the lease. In commercial properties, the base rent is the minimum due each month, with extra payments due based on, for example, a percentage of sales. A retail store may have a base rent of $500 per month, with an additional rent amount of 2 percent of gross sales.

Use base rent in a sentence

You should try and figure out what the base rent you would accept is and always try to get more.

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In the contract it stated that the base rent would be 500 a month, but it could increase to 800 a month depending on market factors.

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The base rent on my building is $1500 per month but may increase if I choose to have the owner of the building include my utility usage in my rent.

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cumulative discount rate modified gross lease