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Retail Tenant Qualifications

Posted by Capital Retail on May 2, 2018
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There are several issues that come into play when seeking to lease commercial space that will, to a certain extent, dictate what the landlord will want to see from the prospective tenant. There is no uniform process for commercial tenants to qualify for a commercial lease. Landlords evaluate prospective tenants differently and with different criteria on a case-by-case basis.  For example, if leasing costs are low to the landlord, with little or no tenant improvement allowances, then the landlords may be willing to take a greater risk.  Before leasing space to a retail tenant, most landlords will require the tenant to complete a tenant application and submit business financial statements. Many landlords will also require personal financials from the owner so they can an assess the viability of them as a guarantor of the lease.  Additionally, the landlord or its agent will most likley run a credit check. Many tenants can qualify to lease space if the Landlord thinks their concept will do well in their shopping center and compliment co- tenants making their overall center more attractive to consumers. For example, a landlord with a vacant space next to a movie theater would rather have an ice cream shop than a dry cleaners even if the owners of the ice cream shop are not as financially qualified as the owners of the dry cleaners. Think like a landlord and you will be better prepared to get the terms you want and need in your lease.