Shopping center leases are a private contract between individuals, which means that there is no one set way that the contracts work. The person leasing the space in the shopping center and the landlord who has the space to rent out are able to negotiate the terms of the agreement amongst themselves. However, while each individual agreement has its own characteristics and nuances, there are some commonalities in the way the contracts are usually organized.
Understanding Shopping Center Leases
The shopping center lease will generally specify both the rent and the length of time that the tenant is going to be obligated to rent the space. Quite commonly, the tenant pays a base rent that is tied to the amount of square feet the store occupies. In addition, the lease may require the tenant to pay a certain percentage of gross sales. Shopping tenants also often contribute a portion of the expenses of maintaining the common areas of the shopping center and may also pay for part of the property taxes.
In addition to basic clauses regarding the length of the lease and the amount of rent due, there must be many other clauses and details included in a lease if both the landlord's rights and tenant's rights are to be protected. For instance, a tenant may want an "option to renew" that will let him or her keep the space at the end of the lease if s/he so chooses. The lease agreement will probably also specify what changes the tenant may make to the space, e.g. - reorganizing, redecorating, repainting, etc. There may be limitations on the type of business the tenant can run, or there may be a requirement that the landlord not rent space in the same location to a direct competitor.
Getting Help
These are just a few of the examples of possible clauses that could be found in a shopping center lease agreement. If you are considering renting space in a shopping center, you need to have legal help to make sure your rights are protected and the lease agreement is fair.