Termination Clause for Lease of Retail Space

retail king

Wondering what is the typical terms for terminating a leasing contract? Is it always stacked against the tenants?

E.g. if the retail mall landlord decides to close the whole mall for a 2 year renovation 3 months after your renew your lease and spent money on renovation, is there any recourse for you to claim compensation, or the contracts bind you to comply, with no compensation?

Let's see. (Votes are anonymous)

ohstacy

Depends on the Mall manager I suppose, that's why some tenants stick to big ones like Cap Mall although I would rather go with other malls for their pricing..

As a tenant there's always a risk but generally a mall wouldn't suddenly terminate if it is doing well (makes sense) if they were to terminate because of bad business then it's probably better for you too

meinteel

CapitalMall, AsiaMalls, Landlease...there all have pretty much similar terms isn't it? Most malls don't terminate unless you are spoiling the mall image. Otherwise, they usually wait till your lease is up before asking you to vacate.

sccheng5512

I have been in this retail business only for 3 months. Generally, I find the terms and conditions are pretty skewed towards the landload.

1. Heavy Rental
2. Most required a block of 3 months lease (although not definite, can negotiate for shorter terms)
3. 3 months, then 2 months security deposit (???)
4. No much negotiation leeway for longer terms committment
5. Generally they gave you the feeling that take it or leave it.
6. It is the "supplier" over the "customer" world in this leasing of retail space business
7. Worst of all, the market is not so bullish and yet the stupid rental is AT crazy levels (only my personal opinion)

Material + Rental + Resources + Tax ++++ anytime suppassing $10,000. It is lucky for those who can still operating. Just imagine how much of your margin goes to the landlord...

If I can make the clock turn back, I will work damn hard to become a landlord. Cheers!