Strip centers, shopping centers, and mixed-use retail across Broward, Miami-Dade, and Palm Beach. Percentage rent, exclusivity, co-tenancy, and TI negotiated entirely around your business model.
Retail tenant representation requires a completely different lease skillset than office or industrial. A retail tenant is negotiating clauses that don't even appear in an office lease: percentage rent breakpoints, exclusivity language, co-tenancy rights, radius restrictions, kick-out clauses, continuous operation covenants, and ticket sales reporting requirements.
Sign the wrong retail lease and you're handing your future revenue to the landlord — through overpaying on sales, getting squeezed by a competing tenant next door, or being trapped in a dying center with no exit.
Many retail leases have a percentage rent provision — you pay the landlord a percentage of gross sales above a certain threshold (the natural breakpoint). The natural breakpoint formula is Annual Base Rent ÷ Percentage Rate. A $120,000 annual rent with a 6% percentage rate creates a $2,000,000 breakpoint. A landlord can raise or lower this, and most landlord forms set an artificial breakpoint that hits much sooner. Justin negotiates either the natural breakpoint, a dollar-stated breakpoint above natural, or — preferably — eliminates percentage rent entirely.
Exclusivity means the landlord agrees not to lease space in the same center to a direct competitor. Landlords often narrow this language to something useless ("primary use" exclusivity that doesn't cover the actual business threat). Justin drafts broad-but-limited exclusivity that protects your actual revenue — and builds in enforcement teeth if the landlord breaches.
Co-tenancy ties your lease to the presence of anchor tenants. If a major anchor goes dark (think Bed Bath & Beyond, or a key department store), your rent drops to a reduced rate or you can exit. Most landlord forms have no co-tenancy; Justin negotiates both opening co-tenancy (you don't have to open until anchors are in place) and ongoing co-tenancy (rent reduction or exit if anchors leave).
Landlord form leases often include radius clauses preventing you from opening another location within a certain distance — sometimes miles. This kills your expansion plan. Justin negotiates these down to a reasonable geography or removes them entirely.
Retail TI in South Florida currently ranges from $25 to $60 per rentable square foot depending on second-generation condition, term, and landlord. Justin structures TI as a combined cash contribution plus free rent stack, and fights for landlord work (HVAC, grease trap, power upgrade) separate from TI.
Common Area Maintenance charges are one of the most abused line items in retail. Justin negotiates caps on controllable CAM growth, exclusions for capital improvements, right to audit, and gross-up limits on reporting.
A kick-out gives you the right to terminate the lease early if sales don't hit a defined threshold. This is rare in landlord forms and incredibly powerful for retail tenants — especially first-location operators. Justin draws a kick-out tied to sales performance with clear enforcement.
Example Justin regularly sees: A landlord sends a retail LOI with percentage rent at 6%, breakpoint at $50,000 monthly sales. That breakpoint is below natural. Justin calculates the natural breakpoint, pushes the breakpoint to or above natural, adds a sales audit protection, and negotiates exclusivity around the tenant's actual product category. Net effect: tens of thousands in annual percentage rent saved.
"Justin at Mattis Advisors was incredible! He provided a thorough property review, helping me decide whether to sell, hold, or exchange into another property. His analysis and insights were spot-on, ensuring the best outcome for my family. Justin also invited me to a 1031 exchange luncheon, which gave me the knowledge to make a well-informed decision. I highly recommend Justin to anyone needing expert real estate advice!"
"Justin is truly exceptional. From start to finish, he made us feel like a top priority and handled every step with professionalism, care, and heart. It's hard to find someone who's not just doing a job, but genuinely invested, and that's Justin. He's one of the best advisers I've come across in Florida. If he's not already on your team, do yourself a favor and ask for him. You won't be disappointed!"
"Justin Crow helped us find my latest gallery/office and was extremely helpful. Highly recommend Mattis as a firm."
Retail-specific clauses: percentage rent and breakpoint structure, exclusivity / use protection, co-tenancy rights (opening and ongoing), radius restrictions, kick-out clauses tied to sales performance, continuous operation covenants, sales reporting obligations, and CAM caps. These clauses don't exist in most office leases, and getting them wrong costs retail tenants meaningful annual revenue.
The natural breakpoint formula is Annual Base Rent divided by the Percentage Rate. For a $120,000 annual rent with a 6% percentage rate, the natural breakpoint is $2,000,000 in annual sales. Above that breakpoint, the tenant pays the landlord 6% of every additional sales dollar. Landlord forms often set artificial breakpoints below natural — Justin's default position is to eliminate percentage rent entirely or push the breakpoint above natural.
Co-tenancy ties your lease obligations to the presence of named anchor tenants in the center. Opening co-tenancy: you don't have to open for business until anchors are operational. Ongoing co-tenancy: if an anchor goes dark, your rent reduces or you have a termination right. Most landlord forms have no co-tenancy protection — it's a negotiation win when structured correctly.
Retail TI ranges from $25 to $60 per rentable square foot depending on condition (second-generation vs. shell), lease term, and landlord financial position. Restaurant spaces with existing grease traps, hood systems, and plumbing command less TI. Shell spaces command more. Justin benchmarks against comparable active deals before the LOI.
Retail landlords are aggressive about personal guaranties, especially for first-location operators without multi-year financials. Full guaranties are rare to completely avoid, but structures like a good guy guaranty, a rolling burn-off after years 2-3 of performance, or a capped-dollar guaranty are standard negotiated outcomes.
A kick-out clause gives the tenant the right to terminate the lease early if sales performance fails to reach a defined threshold. This is rare in landlord forms but highly valuable for retail tenants — especially first-location operators or concepts being tested. Landlords will often negotiate a kick-out at year 3 tied to gross sales under a specific number.
Free consultation. No obligation. Justin will review your situation and lay out your options.
