Loss of Shopping Center Tenant Triggers Co-Tenancy Rent Cut

What Happened: A shopping center lease contained a co-tenancy clause giving a tenant a reduced rent if occupancy by major retail tenants fell below 70 percent. The bankruptcy of a grocery store tenant occupying 63,000 square feet triggered the clause. But when the tenant notified the owner of its intent to pay the reduced rent, the owner asked a court to proclaim that the co-tenancy clause was unenforceable.

Full Article Access:

Full access to complete articles from Commercial Lease Law Insider is for subscribers only.

Not yet ready to subscribe?