Relocation Variables

Depending on the size of the retail shopping center you are targeting your landlord may request you to accommodate a relocation clause in your lease. On first blush, you may think this is a totally unacceptable request. BUT, keep in mind, the stronger the landlord makes the shopping center, the more traffic will come to the center and hopefully the higher sales and profit you, as the tenant, will make. This is the proper mindset when addressing a relocation request provision.

Questions you have to ask yourself include:

•  Is the relocation mandated in the existing lease?
•  Does tenant have right to terminate if they don’t relocate?
•  If relocation is within current lease, who is responsible for all the expenses? That should already be defined.
•  Current sales trend. Are sales trending up or down?
•  Are you as the tenant emotionally willing to switch centers, if you have to leave?
•  Are you, as the tenant, willing to accept cash settlement to not relocate, and terminate?
•  Why is the relocation being considered?
• Has lost sales, due to downtime been factored in?
• Has employee turnover due to downtime been considered?

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