Leases in the retail sector
This series of articles explores key issues to be considered when agreeing heads of terms and negotiating the provisions of leases, with a focus on the retail sector.
Historically, leases have been landlord-friendly, with tenants forced to accept onerous terms. However, over the last 10-20 years, leases have become more balanced, which benefits tenants, including retailers.
Despite this, negotiations can still be lengthy, especially when landlords use outdated precedent leases that may not reflect current market conditions or the needs of retail tenants.
Retail leases are often more complex due to the specific operational requirements of retailers. Therefore, it is crucial for retailers to engage solicitors early in the process, ideally before heads of terms are agreed. Having well-balanced heads of terms that address both parties’ concerns is essential for avoiding delays and ensuring smooth negotiations.