A long-term lease generally refers to a commercial lease of five years or longer, or a residential lease longer than one year. It involves a contractual agreement between a landlord and tenant for the use of a property for a prolonged period.
A Percentage Lease is a lease agreement where the rental payment is based on a percentage of the tenant's sales volume made at the leased property, often with a stipulated minimum rent. This type of lease is frequently used by retailers.
