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On the Path of Lease Resistance
If a retail tenant enters into a lease for space within a shopping center and the landlord does not disclose a co-tenant's exclusive use provision or other restrictions affecting the leasable space, what are the potential consequences to the new tenant if its business use infringes upon or violates any such restrictions?
Many leases for space in shopping centers and malls include restrictive covenants and/or exclusive use provisions that prohibit certain uses by other tenants operating within the shopping center. By negotiating for an exclusive use provision or prohibiting certain uses, a retailer can effectively prevent the landlord from renting nearby space to a competitor.
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