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Exclusive Use Provisions in Commercial Leases

Exclusive Use Provisions in Commercial Leases

September 22, 2022 at 2:36 PM - Commercial Real Estate,

Exclusive use provisions are common in commercial leases, especially those involving large shopping centers with many tenants. An exclusive use provision allows a tenant to use its premises for an intended specific use (for example, as a restaurant, clothing store or electronics retailer), and restricts other tenants in the shopping center from using their premises for the same or a similar use. Landlords and tenants generally understand what exclusive use provisions are, but often fail to give these provisions the time and attention they deserve when negotiating a lease. If not drafted carefully, an exclusive use provision can create problems for both tenant and landlord.

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