What is major difference with Shopping Mall lease vs. Retail Center? As a tenant rep, what do I need to watch

to look for the best interest of my client. Never done shopping center leases...
In Leasing Property - Asked by Joon L. - Jan 9, 2012
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Answer(s)

Michael L.
Broker/Agent
Ellicott City, MD

Mall tenants are comprised mostly of National Chains. The tenant mix is determined by Mall Mgt. for those smaller tenants between the anchor dept. stores. The base rent is generally higher PSF than the Retail Ctr. because the MALL generates customers for your tenant. Also the PASS-THRU's or additional rents items, surpass the usually "add ons". Malls charge for Advertising, and many types of management cost. It is not uncommon to add 30% to the base rent quoted. In addition, Mall leases contain clauses that mandate your store owner to redo stores appearance over the term. $$$$

Jan 10, 2012
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Chris R.
Broker/Agent
Denton, TX

Shopping mall leases will also typically be more stringent on hours of operation that obligate the retail operator to be open "mall" hours - which can be longer than those of many retail shopping centers. May include requirements of being open 7 days a week. Just have to compare the requirements of the "mall" vs. the retail shoppnig center relative to your clients wants, needs, desires, etc. for the operation of their business as to which one is the better match.

Jan 10, 2012
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