Which lease type would likely not be suitable for a restaurant or retail store?

A residential lease is designed specifically for residential properties where tenants reside in the unit. It typically includes terms that apply to living spaces, such as limitations on the number of occupants, rules relating to quiet enjoyment, and provisions focused on tenancy rights. These terms are not relevant or appropriate for commercial spaces like restaurants or retail stores.

In the context of a restaurant or retail environment, lease types such as a triple net lease, percentage lease, and gross lease are more commonly used. A triple net lease holds the tenant responsible for expenses like property taxes, insurance, and maintenance, making it attractive for businesses looking to have a clear understanding of their financial obligations. A percentage lease allows the rent to be linked to the tenant's sales performance, which is beneficial for retail businesses seeking to align rent costs with revenue. A gross lease typically bundles all expenses into a single rent payment, simplifying budgeting for tenants.

Because a residential lease caters to different needs and regulations related to residential living, it would not be suitable for a commercial context like a restaurant or retail store.