Defining the scope of the permitted use in a commercial lease can be a very important consideration for both Landlords and Tenants. Attention should be given to whether the use is too broadly or narrowly defined, whether there are incidental or accessory uses to consider and whether the use may infringe on prior agreements or commitments made to others. For restaurants, you may even consider negotiating specific menu items or concepts.
In some cases, the parties may also wish to negotiate an “exclusive use” provision, where the Tenant is granted a right to be the sole operator for its particular type of business in a given building or within a certain area as defined in the Lease. The scope of these agreements, and the enforcement mechanisms for ensuring compliance by both Landlord and Tenant, can become another heavily negotiated topic. Contact us for help with Commercial Leases.