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Shopping Center Leases

By Martin J. Doyle and Igor Pleskov
October 02, 2014

Often, tenants negotiate exclusives that prevent landlords from leasing space, or approving assignments or sublets for a similar use or prohibited uses. Such exclusive provisions effectively prevent certain uses in the shopping center, which a tenant may find either offensive or detrimental to the value of the center. These provisions, reasonable at the time of negotiation, can sometimes become outdated quickly as new business ideas develop, unforeseen by landlords and their attorneys. Recently, this phenomenon has been particularly pronounced with the growth of certain unconventional shopping center tenants.

Urgent Care Clinics

An example of an increasingly common unconventional tenant is the urgent care center. In the past, many landlords would routinely grant restrictions to requesting tenants who wanted to prohibit medical uses in certain shopping centers. Tenants would ask for these restrictions to protect the “retail” nature of the center due to concerns that medical offices do not create the same synergy as a typical tenant.

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