A landlord’s priorities are predictable income, protection of the asset, and a lease its lender will accept.
Credit. Financial statements at signing and annually; a guaranty from a creditworthy party; a security deposit or letter of credit sized to the improvement contribution and the risk; and a right to require additional security on a decline in credit.
Rent structure. Escalations, and in a net lease a clear allocation of taxes, insurance and operating costs with no exclusions that shift capital items back to the landlord unintentionally.
Use and continuous operation. A defined permitted use, and in retail a continuous operation covenant with a remedy, since a dark store harms the centre.
Alterations with consent, plans approval, lien protections and a restoration obligation.
Insurance and indemnity with waivers of subrogation, additional insured status, and coverage limits reviewed periodically.
Default and remedies. Short cure periods for monetary default, a comprehensive remedies clause preserving post-termination damages, and an acceleration provision drafted to survive a liquidated damages challenge.
Lender requirements. Subordination with commercially reasonable non-disturbance, estoppel obligations with short deadlines, and no prohibition on financing.
No offset rights for the tenant, and limits on self-help repair.