Lease of part: retail unit in shopping centre

by Practical Law Property

A standard document for the lease of a retail unit within a shopping centre, which can be adapted for use as a headlease or an underlease. This standard document defines the demise as an internal-only premises but including the shopfront and fascia, and offers flexibility in the tenant's repair obligations, allowing for use as a full repairing and insuring (FRI) lease or qualification by a schedule of condition. Provisions are included for the landlord to insure the shopping centre and recover costs through a service charge, with optional clauses for addressing uninsured risks and implementing a service charge cap linked to the Retail Prices Index (RPI). This standard document also contains optional provisions for an upwards-only open market rent review, which may include a cap and collar on the reviewed rent, and a break clause that can be structured for the landlord, tenant, or both parties. It includes optional provisions for a tenant's guarantor and contains optional wording to facilitate its use as a renewal lease, making it a versatile tool for various retail letting scenarios.