In which type of lease does the rent depend on the volume of the tenant's gross business?

A percentage lease is specifically designed to tie a portion of the rent to the tenant's business performance, particularly the volume of gross sales. This structure is commonly used in retail and commercial leases, where the landlord benefits directly from the tenant's success. The rent is typically composed of a base rent amount and an additional percentage of the gross sales that the tenant generates.

This type of lease aligns the interests of both the landlord and the tenant; as the tenant's business thrives and generates more revenue, the landlord benefits from increased rental income. It also encourages landlords to support their tenants, providing a synergistic relationship to maximize profitability.

In contrast, a fixed lease consists of a set rental amount regardless of the tenant's business performance, meaning it's not directly tied to their sales volume. A triple net lease places the responsibility for property maintenance, taxes, and insurance on the tenant while maintaining a fixed rent. An operating lease is more common in equipment leasing rather than real estate and does not relate to business volume.