Exclusive Use Provisions: Avoiding Common Pitfalls in Retail Lease Agreements
By Karla Kraft, David Keithly, and Kenneth Hsu
©2014 All Rights Reserved.
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.