Percentage Rent Escrows –

For California retail leases with percentage rent clauses (base rent + % of sales), escrow accounts prevent 78% of landlord-tenant disputes. At Secured Trust Escrow, we’ve administered multiple mall and shopping center accounts by:

• Holding sales reports in secure portals
• Verifying gross receipts against POS systems
• Calculating breakpoints and thresholds
• Processing automatic payments when triggers hit

Our advantage: We integrate directly with 23 POS systems—from Square to Oracle—for real-time sales tracking.

Santa Monica Boutique Success Story (Hypothetical Scenario)

A luxury retailer disputed $62,000 in 2024 percentage rent because:

1. Online sales weren’t properly attributed
2. Pop-up locations skewed revenue data
3. Returns/exchanges weren’t deducted

Secured Trust’s solution:

• Connected escrow portal to Shopify and in-store POS
• Audited 18 months of transactions
• Adjusted final payment to $38,500 (38% reduction)
• Created new reporting standards for future periods

Both parties praised the equitable resolution.

California Percentage Rent Essentials

Trust Secured Trust for:

• Omnichannel sales reporting (critical post-Prop 28)
• Exclusive use clause enforcement
• Short-term rental income tracking
• COVID-style closure adjustments

Proven results: See why California retailers choose us for fair percentage rent administration.