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Exclusive Use Clauses in Shopping Center Leases

By Randall S. Arndt
July 28, 2005

There are few shopping center lease clauses that are more important to a retail tenant than the exclusive use clause. For many retail tenants, the scope of the exclusive use clause represents the essence of the tenant's bargain with the landlord. A tenant's ability to “corner the market” in a retail center for its particular use adds tremendous value to the leasehold estate and can significantly expand the tenant's gross sales at the center.

Bargaining Strength

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