Co-Tenancy
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    Co-Tenancy

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    Article summary

    A provision in some retail lease contracts that allows a tenant to exercise remedies if certain conditions are not met with respect to the retail center in which they are located. Typically the provisions are tied to "key" or "anchor" tenants, or to an occupancy threshold for the retail center.

    For example - A small ice cream shop leases space in a shopping center because it has a large electronics store anchor tenant occupying 40% of the overall shopping center and driving healthy traffic. If a year later the electronics store unexpectedly went bankrupt and shut down its store, a Co-Tenancy Clause could protect the Ice Cream Shop and provide remedies such as reduced rent or ability to terminate its lease contract.

    Click Rent Roll in the left navigation bar.
    CF_COT_01
    Click an existing entry in the Rent Roll table.
    CF_COT_02
    Click the Percentage Rent tab.

    Check the Co-Tenancy box.
    CF_COT_03

    Co-Tenancy in CashFlow



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