The outcome in lease negotiations between the landlord and retailer is largely determined by leverage. A number of factors determine who has the most bargaining power including:
- Strength of tenant’s financials.
- Tenant’s operating experience.
- Effect on the “tenant mix” and customer traffic within the shopping center
- Size of the premises leased.
- Availability of alternative tenants for the same location.
- Existing success of the shopping center without the tenant.
- Perceived desirability by landlord of tenant’s use to shopping center.