There is no typical lease term. My background is with retail and shopping centers so I will give you my perspective for what I know. A 'mom & pop' retail tenant may only want a 1-3 year lease, more savvy and experienced retailers may want a 5 year initial lease. Depending on the retail category, demand for a particular type of location and amount of tenant allowance involved, many landlords will require a long term initial lease term. For example, fast casual restaurants are a hot category and most require high visibility locations in strong center, typically looking for an end-cap with outdoor seating in an out-parcel building of those centers. There's only so many of those locations, which gives the deal leverage to the Landlord and many require a 10 year initial term. Most will give two 5 year options with this, but some larger landlords with quality locations will not even give options at all unless its for a credit tenant. There are so many variables, it's really an impossible question to provide a generic answer for. It's sort of like asking what the average temperature in the US in the winter...it doesn't really mean anything.
Sep 29, 2016