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Ease. A co-tenancy provision permits a tenant to exercise remedies if certain conditions are not met with respect to the shopping center in which it is located. As discussed below, co-tenancy provisions are typically tied to the presence of certain key tenants or an occupancy threshold based on a percentage or specified amount of tenants or a square footage in a center being open. Tenants want co-tenancy provisions, which may relieve them from being obligated to open, pay full rent or oper.
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Creditworthiness FAQ
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What Is a Co-Tenancy Clause? A co-tenancy clause in retail lease contracts allows tenants to reduce their rent if key tenants or a certain number of tenants leave the retail space.
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Dark Store Rent means amounts accruing for rent and related amounts in respect of a Dark Store under an Executory Contract or Unexpired Lease for the period on or after the Petition Date through the effective date of rejection of the applicable Executory Contract or Unexpired Lease.
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A provision highly sought after by tenants, the typical “go dark” provision allows a tenant to completely cease operations at the premises without being in default of its lease; provided that the tenant is not then currently in default, continues to pay rent to the landlord and meets its other obligations under the ...
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These tenants insist upon the flexibility of being able to close their businesses, or "go dark," if economic circumstances warrant. After all, it may be more economically prudent for the tenant to simply pay rent, instead of being obligated to continue to operate at a loss, while paying rent.
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A percentage lease requires commercial tenants to pay to the landlord a set percentage of gross revenue earned from business conducted at the leased premises. This percentage is added on top of a base rent, but the base will be set lower than it would be on a standard lease, making it attractive to tenants.
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The tenant's right to cease operations at its leased space while the tenant continues to pay rent. A go dark clause is commonly negotiated in retail leases. The right to go dark provides tenants with maximum flexibility, which is especially important for large national retail tenants.
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A go dark provision is clause often used in retail leases which governs whether or not a tenant may vacate a space, while continuing to pay rent, prior to lease maturity. Opposite of a continuous operating covenant, go dark provisions allow a tenant to cease business operations when they turn unprofitable.
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How does cosigning a lease work? Co-signing an apartment lease means taking on equal financial responsibility for payments on a debt someone else holds. While an apartment lease isn't a loan, it does represent debt in the form of monthly payments.
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