5, 2011
NR # 2517B
sales. The percentage rate is paid whenever 15% of the lessees gross sales are higher than the discounted rent as contained in the lease agreement, Lapus said. Lapus said aside from the 10% annual escalation of rent and payment of percentage rent when applicable, lessees are also paying other charges such as maintenance, airconditioning, common use service areas (CUSA), telephones, electricity, water and tenant association dues. These unregulated annual escalations of rent, percentage rent and other charges significantly affect the lessees overhead expenses. A direct consequence of high expenses is that lessees must operate on higher mark-up or the amount added to the cost price to cover overhead and profit, Lapus said. (30) lvc