Which type of lease allows the landlord to increase rent?

The correct answer is a percentage lease. This type of lease allows landlords to adjust rent based on a percentage of the tenant's sales or revenue. In commercial real estate, particularly in retail spaces, landlords may structure leases so that the rent is partially composed of a base rent plus a percentage of sales that exceed a certain threshold. This creates a dynamic where the rent can increase as the tenant's business grows and produces more income, directly benefiting the landlord when tenants succeed.

In contrast, a gross lease typically establishes a fixed rental amount that includes all property expenses, with no allowance for rent increases tied to performance or income levels. A net lease often requires the tenant to pay some or all property expenses in addition to base rent but does not inherently allow for rent increases based on the tenant's performance. A fixed lease maintains a constant rental amount for the duration of the lease term, which likewise would not facilitate adjustments based on the tenant's sales.