Co-Tenancy Clause
A provision in many inline tenant leases at anchored retail centers that allows the inline tenant to reduce rent (commonly to a percentage of sales) or to terminate the lease if a named anchor goes dark or if a specified percentage of the center is vacant. Co-tenancy clauses are the hidden risk multiplier in anchored retail: when an anchor leaves, the visible rent loss is the anchors base rent, but the much larger hidden loss is the rent reductions inline tenants invoke under their co-tenancy clauses.
Lessons that use this term
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
Open this term in the app → — no account needed; browse the full glossary while you research.