If a developer leases property for constructing a shopping center, what type of interest do they have?

In the scenario where a developer leases property to construct a shopping center, the type of interest they hold is referred to as a leasehold interest. This is because a leasehold interest is specifically defined as the right to use and occupy a property that is owned by another party, under the terms of a lease agreement.

In this case, the developer does not own the land outright; rather, they have been granted permission to use the property for a specified timeframe and for specific purposes as outlined in the lease. This arrangement gives the developer the ability to build the shopping center while the ownership remains with the landlord or property owner, illustrating the nature of a leasehold interest.

Other options such as ownership interest or fee simple interest imply full ownership of the property, which the developer does not possess in this instance. Remainder interest refers to a future interest that will come into effect after the termination of a prior estate, which doesn't apply to the situation of leasing property for development purposes. Therefore, leasehold interest is the correct term for describing what the developer has in this leasing arrangement.