relocation clause

relocation clause

A lease clause that allows the landlord to move a tenant to another location within the building,usually to accommodate the entry of a new tenant requiring a large quantity of space or for the expansion of an existing tenant. Tenants requiring site-specific locations, such as retail tenants next to a particular anchor, or office tenants with ground-floor space needs, usually negotiate the deletion of a building's standard relocation clause. If the clause is present, landlords typically pay for all expenses of the move but may not pay for new stationery, change-of-address notifications,or business interruption unless these items are negotiated and included in the lease.

References in periodicals archive ?
If there's one clause in an office lease that tenants often can't wrap their minds around, it's the relocation clause.
Managers can see tenant adjacencies, view encumbrances and ascertain if a suite neighbor has a relocation clause. Cadillac Fairview also uses the software to give brokers a fast look at available retail spaces.
Because of this optimism, they often neglect an important part of the contract, namely the termination, renewal and relocation clauses. Strong franchise agreements should not only define the obligations of the franchisees and franchisors, but also the right processes and procedures in case the business does not do as well as initially planned.
Some things to be on the lookout for when negotiating your lease are relocation clauses, termination agreements, insurance, and compensation for failure to deliver the space on time.
We put relocation clauses into our leasing agreements so we can rearrange space to suit an important new tenant.
Small tenants, which often have relocation clauses in their leases, can be moved.
As a result, more owner-oriented provisions are popping up in leases, including relocation clauses, fixed percentage increases and the option to sell electric to tenants at a profit.
Smaller tenants must also be aware of relocation clauses that allow the owner to relocate a tenant to a different floor in the same building on limited notice.