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Landlord's Right of Relocation

By Glenn Browne

In most commercial leases, even though a tenant has the right to lease a particular space for a certain period of time, the landlord will retain the right to relocate the tenant to another location within the applicable building during the term of the lease. Sometimes, the right for the landlord to relocate the tenant is unlimited (i.e., the landlord can elect to relocate the tenant for any reason or no reason at all). In other instances, this unlimited right of relocation is coupled with the right for the landlord to terminate the lease if the landlord chooses not to relocate the tenant or if relocating the tenant is not financially feasible for the landlord. In other situations, the landlord retains a limited right to relocate the tenant to another location within the building, but only if certain conditions are satisfied.

This article addresses issues that should be raised by the tenant based upon the landlord's relocation right, as well as certain strategic requirements that the tenant should insist upon before allowing the landlord to have a relocation right in the lease.

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