What happens to a percentage rent clause tied to my sales when a new owner takes over?

A percentage rent clause — additional rent calculated as a share of the tenant's sales, common in shopping centre and plaza leases — generally continues to apply after an assignment, since it's a term of the lease itself, and the buyer who takes over as tenant is bound by that lease term the same way you were. What changes is whose sales get measured: once the buyer takes over operations, the clause typically applies to the buyer's sales figures going forward, not yours.

This creates practical issues around the transition period — how sales are reported and reconciled for the period straddling closing, whether the buyer's reporting systems match what the landlord expects, and how any percentage rent owing for the pre-closing period gets settled between you and the buyer. These details are rarely spelled out in the lease itself and need to be addressed directly in your purchase agreement.

Because percentage rent disputes often surface only after a full sales period has passed, it's worth resolving the reporting and settlement mechanics before closing rather than leaving them to be worked out later. A Treadstone business lawyer can help build this into your deal documents.