Which type of lease would likely involve payments based on a percentage of sales?

A percentage lease is specifically designed for situations where rental payments vary based on the tenant's sales revenue. This type of lease is often utilized in retail settings, such as shopping centers or malls, where landlords want to align their interests with the tenants. When a tenant's sales increase, so do the landlord’s payments, creating a mutually beneficial arrangement.

In this structure, the tenant typically pays a base rent plus a percentage of their sales. This arrangement incentivizes both parties: landlords encourage tenants to increase sales since it directly affects their income. It is a common strategy for properties that are high in foot traffic, allowing the landlord to benefit from the success of their tenants rather than relying solely on fixed rental amounts.

In contrast, a gross lease includes a fixed amount for rent without additional payments tied to sales, while a net lease requires the tenant to pay certain expenses (e.g., property taxes, maintenance) in addition to rent, which again does not involve sales percentages. A ground lease typically relates to leasing land rather than a space where sales fluctuate, hence it does not apply to this context.