Which of the following lease arrangements would a landlord be least likely to use with a retail tenant in a shopping center?

In the context of retail leasing within shopping centers, a gross lease is generally less common compared to other lease arrangements. In a gross lease, the landlord covers all property expenses, including taxes, insurance, and maintenance, while the tenant pays a predetermined rent. While this can be appealing in certain situations, it does not align well with the typical operating dynamics in a retail environment.

Retail tenants usually prefer lease structures that allow them to have control over their operating expenses. This is where concepts like net leases, percentage leases, and net-net leases come into play. In a net lease, the tenant typically pays a base rent plus a portion of operating expenses, which encourages accountability over the maintenance of the space and associated costs.

A percentage lease, prevalent among retail tenants, is structured where the tenant pays a base rent plus a percentage of their sales revenue. This aligns the interests of the landlord and tenant, as the landlord benefits when the tenant's business performs well.

Lastly, net-net leases, where tenants cover property taxes and insurance on top of the base rent, are also more in line with the expectations and financial structures customary in the retail sector.

Overall, while gross leases can be beneficial in some contexts, they are the least likely arrangement for retail tenants