Which form of lease/ownership arrangement has the greatest flexibility from the perspective of the retailer?
A) a 15-year lease
B) purchase of the property with 10 percent down; a mortgage loan is taken out for the balance
C) a sale-leaseback for 15 years
D) a short-term lease (5 years) with two renewal option periods of 5 years each

Question

Quizplus · Accepted Answer

A short-term lease with renewal options allows the retailer to have flexibility in their lease agreement and the ability to either extend their lease if they are successful in the location or move on if the location does not meet their needs. This gives the retailer greater control over their business operations and the ability to respond to market conditions. The other options have more rigid structures and do not allow for the same level of flexibility.

Which Form of Lease/ownership Arrangement Has the Greatest Flexibility from the Perspective