Leasing a shopping-centre unit: a three-part guide

Shopping centres are complex ecosystems. Every lease is more than just a contract between landlord and tenant, it is a thread in the wider fabric that holds the centre and its operational environment together. Rent models, service charges, trading obligations, and redevelopment rights all interact to shape whether a centre thrives or struggles.

At Newmanor Law, we work with both owners and occupiers. That gives us a dual perspective on the pressures each side faces and the clauses that matter most. To share that insight, we’ve created a three-part guide to shopping-centre leasing:

• The legal landscape: why shopping-centre leases differ from high-street shops and what makes them legally distinctive.
• Centre management: the legal tools landlords and centre managers need to manage tenant mix, protect value, and keep their schemes flexible for the future.
• The tenant’s perspective: how occupiers can protect themselves from hidden costs, retain flexibility, and make sure their leases support long-term success.

Read together, the series shows how well-drafted leases can align landlord and tenant interests, creating retail destinations where businesses flourish and centres remain resilient.

PART ONE

Shopping-centre leasing: the legal landscape

Leasing a unit in a shopping centre is not the same as renting a shop on the high street. A centre is a carefully balanced ecosystem where every tenant affects the success of the whole. That means leases are not just about rent and repair obligations, they are about how each business fits into the bigger picture. From opening hours to marketing contributions, every clause has a role in keeping the centre attractive to shoppers and financially sustainable for everyone involved.

Rent as a performance tool

Unlike most high-street leases, rent in shopping centres is often tied to how well a store performs. Turnover rent, where the landlord takes a share of sales on top of a base rent, is becoming increasingly common. Done well, it creates a partnership: the landlord shares in the upside if sales are strong, while the tenant has more breathing space if trade dips. The detail matters: what counts as “sales”, how online or click-and-collect revenue is treated, and how performance is reported. When these points are clear, both sides benefit from a fairer, more resilient rent model.

Service charges and scheme governance

Service charges are the centre’s circulatory system. They fund the security, cleaning, marketing, ambience and energy performance that keep a destination attractive – but the rules surrounding such matters will be tightening imminently. RICS has issued a Second Edition of its Service Charges in Commercial Property Professional Standard, which becomes mandatory for RICS-regulated firms from 31 December 2025. The new standard requires earlier budgets, clearer year-end accounts, and greater transparency over how costs are calculated and apportioned. For tenants, that should mean more predictable costs and fewer surprises, and for landlords, it should build trust and reduce disputes, but of course, this remains to be seen.

Use and competition controls

One of the main challenges in centre management is balancing the mix of tenants. Too many similar uses and the scheme becomes bland; the wrong mix and footfall suffers. Leases therefore often include restrictions on what kind of business can operate from each unit. The rules on planning have become more flexible in recent years, but lease clauses still do the heavy lifting. Getting these right helps protect a centre’s unique identity and ensures tenants aren’t competing head-to-head with the shop next door.

Trading obligations and the “keep-open” question

Shopping centres rely on units being open and trading to maintain energy and atmosphere. But what happens if a store is struggling? Landlords can’t easily force a business to keep its doors open if it’s losing money. Instead, leases usually set out minimum trading hours, rules on temporary closures, and financial remedies if those rules are breached. The goal is to keep the centre vibrant without placing impossible demands on retailers.

The ESG and energy-efficiency challenge

Sustainability is moving rapidly up the agenda. At present, shops generally need an EPC rating of at least E to be legally let. But government consultations suggest that by 2030 the bar could be much higher, potentially even a B rating. That raises tough questions – who pays for improvements, and how are upgrades scheduled so businesses aren’t disrupted? The best leases deal with these issues openly, so both sides know what to expect as standards rise.

Security of tenure under review

Another area to watch is lease renewals. At present, many commercial tenants have a legal right to renew their lease when it expires, unless they have agreed to “contract out” of those rights. The system is under review, and reforms may change how it works in future. For now, consistency is key: centres need to know which units can be re-let freely, while tenants need clarity on how long they can expect to stay.

Aligning perspectives

Shopping-centre leases succeed when both sides understand each other’s priorities. For landlords and management companies, the focus is on running a coherent scheme – making sure the tenant mix works, service charges are well managed, and the asset remains attractive to investors. For tenants, the priorities are cost predictability, flexibility to adapt their business, and fair treatment if things change. The best leases balance these interests so that the centre as a whole can thrive.

Looking ahead

Newmanor’s strength lies in seeing both sides of the equation. We help landlords design lease structures that protect value while keeping tenants engaged. We also help tenants navigate the fine print so they know exactly what they are signing up to and how it will affect their bottom line.

In the next two companion articles, we look more closely at each perspective: the landlord’s playbook for running a shopping centre, and the tenant’s guide to taking space within one. Together, they showcase how well-structured leases create centres where everyone can succeed. Read part 2: what management companies should know  and part 3: why shopping-centre leases feel different now.