Relocation Clause. Ensure You Get the Right Wording in Your Commercial Real Estate Lease

Relocation Clause in your lease!

Most leases have wording that gives the Landlord the right to move a tenant to other spaces in the building and the Lease remains in full effect a tenant will be paying either more or less rent based on the new space size.

This presents a number of problems for a tenant beyond the hassles involved in moving to new space. In fact for retail tenants, it can mean the difference between business success or failure.

Office tenants will want to either have this clause deleted from their lease but often this will not be granted by the landlord.

In that case, the tenant will want to negotiate an addition to the wording so that all costs of relocation are paid by the landlord including all leasehold improvements, that it receives comparable space in the building with the same views and the same rental costs if the space is larger than the current space and less if it is smaller than the current space.

In addition, all stationary, legal and moving costs should be paid for by the Landlord and the move should take place after business hours.

Retail tenants may want to try to make it subject to the tenant's approval of the new space and/or subject to termination of a lease with full compensation for unamortized improvements.

To Standard Lease Agreement

Relocation Clause to Home