LSR is commonly found in lease agreements between tenants and landlords, especially in shopping malls or retail centers. It ensures that each store contributes directly to driving foot traffic and brand awareness at the local level.

These contributions may support:

• Local digital and print advertising

• In-mall signage and event participation

• Geo-targeted campaigns

• Community sponsorships

• Local influencer activations

While a mall may already operate a central marketing fund, LSR ensures that individual tenants maintain a stake in driving store-specific visibility and promotions.

In some cases, Local Store Revenue is used instead – referring to the revenue attributed to a specific store location, often used for calculating rent structures or performance-based metrics.

Benefits of LSR in Retail Properties

• Strengthens Local Marketing Impact
  Ensures individual stores actively contribute to localized promotions that drive immediate footfall

• Aligns Tenant and Landlord Goals
  Encourages shared accountability in generating traffic and improving store performance

• Supports Hyperlocal Campaigns
  Allows for marketing strategies that are customized to each store’s audience, region, or sales objectives

• Informs Performance Benchmarks (when referring to Local Store Revenue)
  Enables accurate analysis of individual store success and lease negotiations based on local financial performance

Whether it stands for Local Store Requirement or Local Store Revenue, LSR plays a critical role in how modern retail environments are funded and measured. For landlords, it ensures tenants are active participants in location-specific marketing. For tenants, it’s an opportunity to drive localized engagement and sales – all while aligning with the property’s broader marketing strategy.