Opening and Operating Co-Tenancy Clauses
(Shopping Center Lease)

Summary

These opening and operating co-tenancy clauses may be included in a shopping center lease to condition the tenant's obligation to pay full rent or continue its lease on the operation of other tenants. These clauses include practical guidance, drafting notes, and optional clauses. An opening co-tenancy clause relieves the tenant of the obligation to open its business or pay full rent if certain other tenants, or a percentage of tenants, are not open for business. An operating co-tenancy clause allows a tenant to close its business or pay reduced rent if certain tenants or a percentage of other tenants cease operation. The capitalized terms used in these sample clauses should be conformed to the defined terms in the relevant shopping center lease. For a full listing of key content covering retail leasing, see Retail Leasing Resource Kit. For more on shopping center leases, see Retail Lease Agreements.