Negotiate Favorable Relocation Clause

Negotiate Favorable Relocation Clause



In anticipation of eventual renovation or expansion, a savvy owner will want the right to relocate you to whatever space it chooses, in any part of the building or center. But giving an owner such a broad right could wreak havoc on your business. That’s because the space the owner may want to move you to may be in a less desirable part of the building or center. Or the space may not be big enough for your needs.

So, if you must agree to a relocation right, try to limit where the owner can relocate you. In the lease’s relocation clause, designate acceptable—and unacceptable—relocation zones. For example, an office tenant may specify certain floors or a side of the building with a certain view. A shopping center tenant may demand to be among certain other tenants to maintain a desirable tenant mix and foot traffic.

Also, insist on getting comparable space. The size and configuration of the relocation space must be suitable for your business. Other factors to consider are similar frontage and visibility.

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