Clearly Defining Replacement Tenant in Cotenancy Clause
Q: I’m negotiating a lease for space at a shopping center. I would like the cotenancy clause to provide that a specific well-known retailer that takes up a large space in the center must be replaced with a “major tenant” if that retailer goes out of business. In my experience, this means a national, big-box retailer similar to the outgoing tenant, such as Target or Best Buy. I’ve been focusing on some other hotly contested issues during negotiations. Should I be concerned about this term?