Do Walgreens leases typically include a percentage rent clause

In General Area - Asked by Chuck J. - Oct 4, 2015
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Brian C.
Broker/Agent
Orlando, FL

Not Typical, possible but doubtful, if so the %rent number is ususally set so high, LL never gets additional rent. Every situation and tenant is different, if LL is savy and knows what is customary with that particular tenant, LL may be able to negotiate a better lease for himself.

Oct 6, 2015
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Marty H.
Broker/Agent
Lenexa, KS

Lots of Walgreen deals are developed by a preferred developer list that Walgreens works with because they know what they are doing and they know what the company wants. The completed NNN deals are either retained by the developer or sold off in the Net Leased Market which yields the developer a profit. I would say that it is extremely unlikely that you will find a Walgreen Drug deal with a percentage rent clause. Years ago when drug stores were smaller (like Treasury Drug which was then owned by Penny) a shopping center developer could get them into his new center (usually next door to the grocery) and negotiate a percentage rent clause. However, most modern grocery stores now include pharmacies and the big drug chains are now looking for free-standing locations and don't care if there is a grocery store next door.

Oct 8, 2015
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