SUBJECT AREA - LEASING VARIABLES

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 form. 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 volume and profit you as the Tenant will generate. This is the proper mindset when addressing this relocation request provision.

The variables below were included to make the tenant aware of items which should be considered when addressing this provision. For example, as the Tenant you can “hatch” or predetermine an acceptable area in the center which you would be willing to be relocated to.

OR

As the Tenant you can include a clause that restricts the Landlord to only relocating you once during your term.

OR

You can limit the relocation period to January to September to avoid any disruption of the Christmas Sales Season.

The following list should be self-explanatory but if you have any questions, please contact us.

1.       Is the relocation mandated in the existing lease?

2.       Does tenant have right to terminate if they don’t relocate?

3.       If relocation in current lease, is responsible for who pays what defined?

4.       Current sales trend. Are sales trending up or down?

5.       Is tenant emotionally willing to switch centers?

6.       Is Tenant willing to accept cash settlement to not relocate?

7.       Why is the relocation being considered?

8.       Has lost sales, due to downtime been factored in?

9.       Has employee turnover due to downtime been considered?

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