Retail leasing brokers or attorneys - How would you interpret this percentage rent clause?
I understand that typically there is a threshold sales number for percentage rent to kick in but it's not defined in this clause. This is a lease from over 30 years ago so maybe it's possible Leases were more favorable to Landlord's back then but I'm guessing not.

"Effective 30 days after the commencement of the term of this Lease, in addition to the minimum rent set forth in Paragraph 2.1 hereof, Lessee shall, except as otherwise provided herein, pay to Lessor, as percentage rent, a sum equal to the amount of three percent (3%) of all Receipts from Gross Sales, as hereinafter defined, but less the following amounts paid or payable by Lessee for such period: (a) minimum rent payable pursuant to Paragraph 2.1 of this Lease; (b) percentage rent, if any, payable pursuant to Paragraph 2.3 of this Lease; (c) common area maintenance expenses payable pursuant to Paragraph 6.2 of this Lease; (d) taxes and assessments payable pursuant to Paragraph 7.2 of this lease; and (e) insurance expenses payable pursuant to Paragraphs 10.4 and 10.8 of this Lease."

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Paragraph 2.3 outlines a scenario when the Lessee is being prevent in whole or in part from the free, uninterrupted and umimpeded enjoyment of the use of the Demised Premises. During this period the rent is abated and the rent due is 3% of sales during this period. 

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My assumption is that the percentage rent would be 3% of sales - (minimum rent + percentage rent (during abated periods) + CAMs + taxes &amp; assessments + insurance expenses). Assuming rent, cams, taxes, etc around $250,000 this would imply a breakeven point of $8.3m in sales. Am I correct in this assumption? Or is it possible that the percentage rent is 3% of (total sales less rent, cams, taxes etc), meaning that if sales were $3m then you would take out $250,000 and percentage rent would be 3% of $2.75m?
[{"id": "icmjl3a", "text": "This is a typical retail lease, even though it's a 30 years old.\n\nStep 1 - Determine Gross Sales of the tenant (add all the monthly sales for the prior year)\n\nExample: Assume Gross sales for 2021 is $1,000,000\n\nSTEP 2  - Calculate percentage rent\n\nEx: 3% x $1,000,000 = $30,000\n\nSTEP 3 \n\nSubtract: a) Min rent paid by the tenant, b) percentage rent paid already, c) CAM charges, d) taxes and e) insurance\n\nLet's assume:\n\na) Min rent paid in 2021 is $18,000\n\nb) Percentage rent (prepaid) is $2,000\n\nc) CAM charges is $5,000\n\nd) Taxes is $2,000\n\ne) Insurance is $500\n\nTOTAL RENT DUE to the LL is:\n\n$30,000 - ($18,000+$2,000+$5,000+$2,000+$500)= $2,500", "replies": [], "depth": 1}]