The owner of a retail strip mall has a store available for rent and is approached by a prospective tenant who wants to open a business but has little business experience. If the proposed business is expected to generate increased sales in the future and the owner wants a long-term lease with a fair return overall, which of the following types of leases would be MOST appropriate?

Net leases typically require tenants to pay a base rent plus additional expenses like property taxes, insurance, and maintenance costs. For a tenant with little business experience, this arrangement can be burdensome and lead to financial strain, especially if the business does not perform as expected. Thus, a net lease may not provide the necessary support for growth.

Gross leases involve a fixed rent that includes all operating expenses. While this may seem advantageous for a novice tenant, it does not incentivize the landlord to participate in the tenant's success. As the tenant's sales grow, the landlord receives no additional benefit, making this option less suitable for a long-term lease aimed at sharing future growth.

Ground leases are typically used for land development where the tenant builds on the property. This type of lease is not appropriate for a retail store situation, especially for a tenant with little experience in business operations. The complexity and long-term commitment of a ground lease are not conducive to a new business venture looking for a supportive growth environment.