Differences Between a Retail Lease vs. Commercial Lease
Many people are not aware of the differences between a retail lease and commercial lease. A commercial lease is used for offices, warehouses, or any other type of business space that has more than one tenant. Retail leases are typically used to rent out spaces in malls, strip malls, grocery stores etc. The key difference is that with a retail lease you have to pay an additional percentage on top of your monthly rent fee called "percentage rent." This means if the mall's occupancy rate falls below 80% then you will be charged extra as well as paying your regular monthly rental fees. With a commercial lease you do not need to worry about this because it only applies to retail leases and there would never be less than 10 tenants in such a large building like this. When you are signing a lease for your business, it is important to read through the fine print in order to avoid any surprises later on. For both leases there are always going to be clauses that can be ...