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Exclusive Use Clause
A retail lease covenant granting a tenant exclusive rights to sell specific merchandise or services within a commercial center without competition.
An Exclusive Use Clause is a commercial retail lease provision granting a tenant the exclusive right to sell specific goods or provide particular services within a shopping center or commercial building.
Landlords agree not to lease space to competing businesses (e.g., prohibiting other coffee shops or fitness studios) under penalty of rent abatements or tenant termination rights.
Frequently Asked Questions
What remedies does a retail tenant receive if a landlord violates an exclusive use clause?
Standard remedies include immediate conversion of rent to a percentage of sales, substantial base rent abatements (often 50%), and the right to terminate the lease if the violation is not cured.
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The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
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The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
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A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
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A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
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A commercial lease provision specifying annual rent increases tied to a fixed percentage, stepped rates, or the Consumer Price Index (CPI).
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