Evening star., 1936-09-05
PERCENTAGE LEASE.
TABLE C0MP| lied.
Composite Data Combines
Al Tables of Rates for
456 Types of Stores.
erecial Dispatch to The Star.

Special Dispatch TO The Star.
CHICAGO, September 5.-All per-
centage lease schedules published by
any nationally recognized authority to
date have been included in a huge
composite table on percentage lease
rates which has just been published
by the brokers division of the Ma
tional Association Of Real Estate
Boards.
The composite table-combining Al
tables of rates. which various types Of
business can afford to pay as rents
issued as the chief feature of a booklet
Percentage Leases, published by the
division as a service to its members.
The composite table covers percent
age rates for 456 types of retail stores.
1t lists these rates as they were ad-
vanced by the various leading authori-
ties on retail leasing for each year
from 1921 to the present date. 1t
thus gives opportunitey not only for
o cross-study of rates in present COM
monest use, but also of comparison of
guide-rates over the Is years in which
percentage leases have been in use.
Sources of Data Given.
Source of the various tables, and
supplementary data are given. Any
table of percentage lease rates can
serve only as a rough guide for ne
gotiations and checking purposes, the
foreword points out. The experience
and skill going into the management
OF the business leasing a given space,
the purchasing power of the district,
the location of the store in regard to
its district, the character of occu-
pancy in adjacent stores. the adver-
tising policy of the business are
among the factors affecting the per-
centage of rent that enterprise can af-
ford to pay in that location.
Sources used in the composite tabu-
lation include notably-tables devel-
oped by study made for the divi-
sion itself by a committee under
Stanley Roe, Chicago; tables developed
by the extensive study made by
committee of the National Association
of Building Owners and Managers;
tables developed by individual special
lists in retail and chain store leasing.
including the tables advanced by
Frank S. Slosson. Chicago; Mark Levy,
Chicago: Clifford Bangs, Washington,
D. c.; George j. Beggs, Portland,
Greg; Harry S. Campbell, jr (Wm.
A. White & Sons, New York, and
others.
1t includes results of a Dun & Brad
street, Inc. tabulation on rents ac-
tually paid by retail stores of various
types operating at profit and by
those operating at loss. and United
States census of distribution figures as
to actual expenditures for rent by each
Of the various types of business COW
cred by that census.
Practices in 19 Cities.
The publication, believed to be the
most comprehensive compilation ever
to be made on percentage lease rates,
includes data on leasing practice in
19 typical cities. and an Introductory
discussion by Harold H. Egan, Chicago.
prepared for the division, giving some
dos and dont's in the negotiation of
percentage leases, and listing pro-
visions which should be in percentage
lease in order that it may stand the
test of time. .-t
The contract must be fair to both
parties to stand the test Of the years,
Egan brings out.
Text of typical clauses used ~ex-
tensively in the making of percentage
leases is appended.
AS to the place of the percentage
lease in present-day renting practice
for business space Egan holds:
Il consider the percentage lease
tool with which to fashion an endur-
ing system of successful renting. The
emergency value of the percentage
type of contract is rather we'll known
to owners and brokers. The emergency
use holds good during business de-
preston and when emerging from a
depressed period. But temporary ex-
pedient does not make for the per-
manent system which we are attempt
ing to establish. In order to be en-
during, a contract must be mutually
beneficial and economically sound. A