Out of Bounds: Radius Restrictions in Shopping Center Leases

A common restrictive covenant in shopping center leases is the so-called "radius restriction," a lease provision that prohibits a tenant from opening a competing establishment within a proscribed distance from the present location. Typically, a radius restriction goes hand in hand with a percentage rent provision, which allows the landlord to participate in the tenant's gross sales after a certain threshold or "break point" is achieved.

11 minute read September 01, 2003 at 06:37 PM
By
Joseph P. L. Snyder And Catherine Morgen
Out of Bounds: Radius Restrictions in Shopping Center Leases

A common restrictive covenant in shopping center leases is the so-called “radius restriction,” a lease provision that prohibits a tenant from opening a competing establishment within a proscribed distance from the present location.

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