Many multi-tenant commercial property leases not only describe what the tenant can or will do in the premises but may also contain a restrictive covenant prohibiting certain tenant uses. Landlords may also require its tenant’s business to be open certain times to promote foot traffic on the property and tenants may want to ensure that they are the only business of their type on the property. These restrictive covenants are strictly construed if they go to court for enforcement so careful drafting is needed. Recently a landlord had to ask a court to resolve a dispute over a restricted covenant by deciding whether a taco stand constituted a prohibited second sandwich shop in the retail center (it was).
Should you have any questions or concerns about leasing, premises use or restrictive covenants, please contact us.