Real Property Law

Cal. Real. Prop. Journal 2014, Vol. 32, No. 3

Exclusive Use Provisions: Avoiding Common Pitfalls in Retail Lease Agreements

By Karla Kraft, David Keithly, and Kenneth Hsu

©2014 All Rights Reserved.

I. INTRODUCTION

The world of retail is competitive. Competition for the same customers by established brands, new brick-and-mortar concepts, and the ubiquitous threat of online competition all make it increasingly difficult to maintain a successful, profitable retail business. We all are familiar with the headlines that periodically proclaim the demise of well-known national retail chains. To survive and succeed in this hyper-competitive world, retailers look for every possible advantage. Exclusive use provisions in retail leases provide one such advantage by limiting geographical competition between a tenant and its rivals.

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