How turnover rent works in a mall’s monthly sales close

Get from reported sales to eligible sales

Identify the period, agreement version and eligible turnover definition. Check how the parties treat refunds, taxes, gift vouchers and online orders fulfilled or collected in store. Record the source for each adjustment. A US shopping center may call the payment percentage rent and use a different breakpoint formula. Start with the actual clause for the property. A POS export may already reflect discounts and returns. Deducting them a second time creates a clean-looking figure that is wrong.

Suppose an illustrative UK shopping centre tenant has £240,000 of sales on its agreed eligible basis for June. In this example the monthly commercial terms specify the higher of a £15,000 minimum guarantee and 7% of eligible sales. Seven per cent of £240,000 is £16,800, so the rent under this rule is £16,800. Show the minimum, the percentage amount and the selected amount as three separate fields.

Check what happens around the breakpoint

For these example terms, the sales level where percentage rent meets the minimum is £15,000 divided by 0.07, or about £214,286. If eligible sales are £200,000, the percentage amount is £14,000 and the minimum applies. At £240,000, the percentage amount exceeds the minimum by £1,800. Where a separate minimum invoice has already been raised, the amount still to settle depends on the agreement and the billing entries already posted.

Write down what happens when a tenant opens mid-month, switches to a new rate or supplies a late approved sales correction. A change in the effective date can matter more than rounding a percentage.

Keep the estimate and the issued record traceable

A property manager may want a projected rent figure midway through the month. Finance needs the confirmed period, approved sales basis and effective agreement for an actual settlement. In the Mall Metrics Lease Billing Reports view, Projected Rent Summary shows evidence-through date, completeness, actual and forecast sales, and actual and projected rent. These fields give the operator a way to distinguish the evidence already received from the estimate.

For a demonstration, bring an anonymised commercial clause and one finished month. Ask the presenter to trace the eligible amount, show how an adjustment changes it, and identify the stage at which a person reviews the billing result.

Explore lease billing · Reconcile the tenant’s supporting sales