Ensure Right to Expand Use of Space
Tenant synergy—that is, stores functioning together to draw shoppers that a center normally wouldn’t capture without them as a group—can make or break a tenant’s and a center’s profitability. That’s why savvy owners devise a strategy to have each tenant commit to continue operating the same way—selling the same type of goods or services—that fits that plan.
However, it’s not uncommon for tenants to want to shift what they sell, based on market demand or profitability. And this requires expanding their original permitted use.