Retail and Corporate Leasing

Uplaxya Consultants Pvt. Ltd. is one of the best Retail and Corporate leasing consultant in Delhi NCR. A lease is a contract that sets out the rights and obligations of the owner of a property (the landlord or lessor) and the person or entity who will occupy the premises (the tenant or lessee).

Commercial Leasing

Commercial leasing usually apply to premises that are used as a warehouse, industrial site or an office in a commercial building with no retail activity. The distinction is in the use of the premises and if any form of buying and selling to the public is to take place at the premises.

Retail Leasing

A Retail Leasing means a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment. A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor must uphold the terms of the contract for the lease to remain valid.

Although commercial and retail leasing have many similarities, they have distinct legal differences. State-specific retail legislation governs retail leasing, whereas state-specific property and conveyancing Acts regulate commercial leases. Additionally, a commercial leasing, unlike a retail leasing, can contract out of the property and conveyancing Acts. Here, the underlying assumption is that a retail tenant has unequal bargaining power to its landlord (usually a corporate shopping center owner). The law will not interfere with the business arrangements of commercial land and tenants.

Further, retail and commercial leasing have three other distinctive differences:

1. Disclosure of Information: Retail lease legislation imposes obligations on landlords to provide a tenant with a disclosure statement at least seven days before entering into the lease. A disclosure statement is a summary of the commercial terms of the lease. It provides additional information about the shopping center and all costs payable under the lease. Failure to disclose certain information will give the tenant a right to terminate the lease, even after the parties agree to it.
2. Unconscionable Conduct and Misleading or Deceptive Conduct: Retail leasing premises also receive additional protections concerning unconscionable conduct of landlords.
3. Lease Preparation Fees: In a retail lease, most states do not allow the landlord to charge the tenant for the landlord’s lease preparation or mortgagee consent expenses. Comparatively, parties can usually negotiate these fees in a commercial lease context.