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Commercial Leasing Law & Strategy

April 2007

A Tenant’s Perspective on Co-Tenancy

When Has the Landlord Cured a ‘Dark’ Store?

By Glenn A Browne

In order to protect against a shopping center becoming less populated with retail department stores or so-called “anchor” tenants, tenants will request, and frequently obtain, co-tenancy provisions in their lease documents. While the co-tenancy provisions will vary from tenant to tenant, most co-tenancy provisions will at least protect the tenant from “anchor” stores ceasing to operate (i.e., “going dark”) and from a certain percentage of “in-line” tenants being closed for business. However, the co-tenancy provisions are often very vague as to how a landlord will be deemed to have cured a situation where an anchor store has closed for business.

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