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If your retail tenants install arcade machines in their spaces to attract customers and boost revenue, chances are you're not collecting all the percentage rent you're entitled to. Many retail tenants install assorted arcade machines—such as video game machines, virtual reality computer games, and pinball machines—in their spaces. These arcade machines (whether coin-, computer-, or credit-card operated) provide entertainment to customers and children who want a break from shopping.
You might agree to give your retail tenant a rent concession—such as below-market minimum rent—to persuade it to sign your lease. And in return for the concession, you would expect the tenant to pay you a lot of percentage rent if its business takes off.