Shopping center leases are unlike standard commercial leases. Like a commercial lease, rent will be tied to the number of square feet. However, shopping center tenants may also be required to pay a certain percentage of gross sales. In addition tenants may be required to contribute to the maintenance of the common areas of the shopping center.
Effective shopping center leases should contain numerous provisions which the landlord and tenant agree about. These include:
Landlords of shopping centers may be in violation of anti-trust laws if they have clauses that restrict the use of the property, and give certain tenants a competitive advantage. Examples include:
While there are many restrictions to shopping center leases that are illegal, landlords are permitted to insert certain restrictions. These include:
When deciding if a restriction is illegal or not, the court will consider the intent of the parties, the effect of the restriction on public policy, and among many other things, the importance of the restriction.
Shopping center leases are highly complex and can have a significant impact on the success of your business. An attorney specializing in commercial real estate can review, draft, and modify your lease.
Last Modified: 11-08-2013 11:12 AM PSTLaw Library Disclaimer
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