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Consent to Change of Use

Oct 2, 2018

Lease use clauses are very important to both landlords and tenants, especially in the context of shopping centres and other retail properties. Landlords prefer narrow use clauses that give them control over the merchandising mix in order to ensure that customers, as well as new retailers, are attracted to a property for its diverse array of merchants. Tenants prefer broad use clauses that give them freedom to adapt to changes in the marketplace and allow them to evolve in their product service offering. Broad use clauses also make it easier for tenants to transfer their interest in the lease to another party. Tenants exit shopping centres for a myriad for reasons; they want maximum flexibility to unload their rent and other obligations for space they no longer wish to use. 

Read the full article: Consent to Change of Use

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