Percentage Rent Breakpoints: How Misconfiguration Compounds Across Retail Portfolios

Natural vs. artificial breakpoints are frequently misconfigured in PMS systems, causing systematic underbilling against sales volumes that compounds across every reporting period without surfacing as an exception in the financial system. The gap between the lease-required billing logic and the system configuration goes undetected across reporting period after reporting period — and the variance compounds. By the time a tenant's audit surfaces the error, the accumulated underbilling can represent years of revenue the landlord was contractually entitled to collect but did not.