Commercial Retail Lease Agreement

A commercial retail lease agreement is a legally binding document between a landlord and a business tenant where the property is used for retail purposes. It addresses the specific needs of the business and the operational aspect of the property.

Create Document

Last updated January 2nd, 2025

A commercial retail lease agreement is a legally binding document between a landlord and a business tenant where the property is used for retail purposes. It addresses the specific needs of the business and the operational aspect of the property.

35 Downloads
  1. Home »
  2. Lease Agreements »
  3. Commercial »
  4. Retail

Retail Space Stats (2023)

  • AVG Property Size: 3,200 SF[1]
  • AVG $/SF: $24.69 SF[2]
  • AVG Rent Increase: 3% year-over-year[3]
  • AVG Term: 3-5 years[4]
  • Vacancy Rate: 4.1%[5]
  • Q4 Vacancy Rate: 2.5%[6]

Key Things to Know About Commercial Retail Lease Agreements

  • Lease Term: Can either be short-term (1 year) or long-term (5-10 years, for example).
  • Payment: Rent can be a fixed rate or a percentage of sales. Operating expenses such as property tax and insurance may included.
  • Property Use: Clearly define what the rental property will be used for to ensure zoning compliance
  • Maintenance and Improvements: Landlord and tenant responsibility for repairs and modifications should be defined in the rental contract.
  • Signage: Clearly outline rules for advertising

Special Considerations 

  • Exclusivity: Protection from competitors leasing space in same property.
  • Co-tenancy: If anchor stores or other key tenants leave shared property, this allows the renter to renogiate or terminate their lease agreement.
  • Accessibility: Ensure property complies with Americans with Disabilities Act (ADA).

Top Retail Rental Rates By Region

The average monthly asking rate for shopping center spaces as of early 2024.[7]

    1. West: $29 SF
    2. Northeast: $23 SF
    3. South: $22 SF
    4. Midwest: $17 SF

Sample

Download: PDF, MS Word, ODT