continuous occupancy clause

continuous occupancy clause

A clause frequently contained in the lease of a shopping center anchor tenant requiring it to remain open and in business for the entire term of its lease.The anchor is important not just because of its own rent payments,but also because it attracts customers who will shop at the other retail establishments in the center.If the anchor goes dark by moving out,all the remaining tenants will suffer,causing a possible domino effect of defaults.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.