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Bargaining Leverage: Tenant or Landlord

Posted by capital on February 20, 2018
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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.

Entrepreneur.com has additinal information HERE