Authored by Christopher A. Richardson
When negotiating the terms of your commercial lease, you will want to add an exclusive use clause to the document and negotiate the terms with the landlord. Exclusive use clauses are intended to protect a tenant's business by ensuring that the named tenant is the only tenant in a particular shopping center that can sell or offer to sell specific products or services. In some cases (generally, where a tenant has more bargaining power), an exclusive use clause may extend to any other properties owned by the landlord or an affiliate of the landlord within a certain radius. A well-drafted clause offers the tenant adequate protection from competition without stifling the landlord's ability to attract other compatible businesses for the retail area.