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When Office Tenants Go Dark
Most office leases require tenants to actively carry on business from their leased premises, and prohibit tenants from vacating or abandoning the premises. It is becoming increasingly common, however, for tenants to object to these provisions and to request the lease include a “go-dark” provision.
In a retail situation, it is clearly imperative that the lease includes a continuous use covenant. In an office situation, however, the situation is somewhat different. First, office leases do not typically include the payment of percentage rent. As such, the revenue stream is not dependent on ensuring that the tenant maximizes its sales potential.
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