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wL zT Exclusivity In Lease Agreement – TekSolution

Exclusivity In Lease Agreement

Exclusivity clauses are often a contentious point because landlords want to be as specific as possible, which creates a number of loopholes in the contract that allow them to choose tenants. At the same time, companies interested in the lease should ensure that the terms are broad enough to allow for growth. These agreements are often subject to exceptions for ancillary sales, for example. B where the undertaking concerned does not provide a product or service as the main source of income, but rather as a complementary service. The exclusive use clauses apply only to future tenants. Former occupants of the building are exempt from the agreement. It also does not apply to large anchor tenants, who could possibly change the scope of their services to overlap. For exclusive use clauses, details are extremely important. As a tenant, you do not want the clause to be too specific to the detriment of your own business, but you also want to prevent too many exceptions from nedoing the purpose of the clause and leaving for interpretation a wide range of possibilities that would be more difficult to defend and prove in the event of an infringement. Bedrock Realty Advisors Inc. has been negotiating commercial leases for 14 years.

Our team is perfectly familiar with exclusivity clauses – we know what we need to pay attention to when formulating and we easily understand the legal jargon so you get the best deal. Contact us to find out how Bedrock can help you with your commercial leasing, subletting and leasing renewal requirements. You will usually find the use clause on the first page of your lease. Normally, you indicate what you can use the space for and provide a brief legal definition. You will usually find a more detailed legal definition in the standard rental form somewhere. Restrictive use clauses are often used in respect of other tenants when a tenant has an exclusivity clause, but can also be used alone. When used as an extension of an exclusivity clause, they generally prevent tenants from maintaining conduct contrary to the exclusivity granted to the other tenant. However, you can simply prevent tenants from engaging in certain business activities that the landlord can prohibit, for example.B.

selling edible property or subletting unused land to another tenant. Ideally, the restrictive agreement involves a serious consequence for your landlord if he does not keep his promise. This could be something like reducing the rent you have to pay if the landlord allows your competitor to move into the building (i.e. reduce the rent to $1.00 per square foot). The owner or owner of the property must balance the exclusivity demands of his tenants against his own needs, in order to have a large pool of potential commercial tenants to fill their real estate. . . .