When it comes to retail leasing, one size doesn’t fit all. There are different types of leases, each with its pros and cons, and it’s important to understand them before signing an agreement. From net leases to gross leases, choosing the right type of lease can make a big difference in your monthly expenses and overall satisfaction. In this blog, we’ll break down the most common retail lease types and help you figure out which one might be the best fit for your business.
Many landlords are offering flexible lease terms to attract quality tenants. Whether it’s a shorter lease period or a percentage rent agreement, there’s more room for negotiation now than in the past. Understanding your options can give you a better position at the negotiating table, and help you secure a deal that works for both you and your landlord.
We recently worked with a small boutique that was uncertain about which type of lease to sign. After reviewing their business plan and financials, we recommended a percentage lease in a busy shopping center. This allowed them to start with a lower base rent, and as their sales grew, they paid more in rent based on their success. This flexible arrangement helped them ease into the market without being overwhelmed by high fixed costs.
Our advice? Don’t just look at the base rent. Consider the total cost of occupancy, including all additional expenses that come with each type of lease. Be sure to understand exactly what you’re responsible for before signing the lease. And remember, everything is negotiable—don’t be afraid to ask for better terms.
Choosing the right retail lease type is an important step in securing a space that fits your budget and business needs. By understanding the different lease options and negotiating smartly, you can find a lease that works for you. Need help figuring out which lease is right for your business? Reach out to us, and we’ll guide you through the process.
