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.
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