Tenant Accidentally Waives Its Co-Tenancy Rent Cut Rights

What Happened: A shopping center lease let the tenant pay reduced rent if an anchor closed and wasn’t replaced within 120 days. In July 2016, an anchor tenant, Sports Authority, closed and the landlord didn’t find a replacement for nearly three years. But the tenant forgot about the co-tenancy clause and continued to pay full rent for two-and-a-half years. When it finally realized its mistake in December 2018, it sought to take back the rent reductions it missed out on by announcing plans to withhold $254,583 from future rent payments.

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