Retail Lease (Pro-Landlord Short Form)

by Practical Law Real Estate

A Standard Document that provides a pro-landlord, short form retail lease for a space within a shopping center. This Standard Document establishes the essential terms for a retail tenancy from the landlord's perspective. It sets out a rent structure consisting of Fixed Rent, Percentage Rent tied to the tenant's Gross Sales, and Additional Rent for the tenant's share of Real Estate Taxes and Operating Expenses. Key tenant obligations are clearly defined, including performing all initial "Tenant's Work," handling repairs and maintenance for the premises, and operating within specific use restrictions. This Standard Document grants the landlord significant rights regarding common areas, assignment and subletting, and defaults. It also contains critical provisions on insurance, indemnity, casualty, condemnation, subordination, and the requirement for estoppel certificates, offering a framework to protect the landlord's interests throughout the lease term. This Standard Document has integrated notes with important explanations and drafting and negotiating tips for both landlords and tenants. While retail leases are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.