Exclusive Use Clause (Shopping Center Lease) (Pro-Tenant)
Summary
This exclusive use clause may be included in a shopping center lease to give a tenant an "exclusive use," which allows the tenant to be the only retailer of its type in the shopping center. This clause includes practical guidance, drafting notes, and optional clauses. Landlords generally resist such a clause, as they want flexibility to react to future market conditions and to rent space in the shopping center to any tenant that landlord feels will provide the best tenant mix, therefore allowing landlord to maximize profits. However, tenants with sufficient bargaining clout are often able to negotiate exclusive use provisions into their leases. This clause is tenant-favorable, with drafting notes suggesting additional considerations for tenant. The capitalized terms used in this clause should be conformed to the defined terms in the relevant shopping center lease. For a version of this clause that favors landlord, see Exclusive Use Clause (Shopping Center) (Pro-Landlord). For more ...