Not all retail tenants can get a landlord to agree to a co-tenancy provision, but this still should be part of the tenant’s discussion with its broker or landlord. A co-tenancy provision allows a tenant to pay a reduced amount of rent when certain conditions are not met either before the store opens or once the store is operating. Usually, the condition is that certain other stores, such as anchors, or a certain percentage of stores in the center have to be open for business. For example, if a certain anchor tenant plus 70% of the remaining space in the
Continue Reading Leasing 101: The Co-Tenancy Clause
