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 require the tenant to pay base rent plus additional expenses such as property taxes, insurance, and maintenance costs. While this structure can be beneficial for established businesses that can predict their expenses, it may be burdensome for a new tenant with little business experience, potentially leading to financial strain.

Gross leases involve the landlord covering all operating expenses while the tenant pays a fixed rent. This lease type could be simpler for a new tenant but does not align with the owner's desire for a long-term lease that fairly reflects the business's future sales potential. The owner may miss out on increased revenue as the tenant's business grows.

Ground leases involve leasing land with the tenant responsible for constructing their building. This type of lease is typically long-term and requires significant investment by the tenant upfront. Given the tenant's lack of experience, a ground lease may be too complex and risky for them to manage effectively.