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In the Spotlight: Limiting the Impact of Co-Tenancy Requirements
Part One of a Two-Part Series
A co-tenancy requirement may have substantial negative effects, including a domino effect if more than one tenant ceases to operate. Most landlords resist giving such rights to a tenant, especially an in-line tenant. However, if an important tenant has sufficient negotiating leverage, a landlord may be forced to roll the dice, agree to a co-tenancy requirement, and hope that the designated co-tenant will continue to operate during the term of the benefited tenant's lease. This article focuses on ways a landlord can limit the impact of co-tenancy requirements.
Broadly Define Co-Tenancy Requirement
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