Reverse Radius Clause | Propertylogy

Reverse Radius Clause

By on September 20, 2018

A reverse radius clause is primarily found in shopping center leases whereby the owner of the shopping center will be in breach of contract should he build or buy another shopping center nearby.

The main reason for this term in the lease is so that the landlord don’t get with distracted by other opportunities in the area.

And instead focus on making the success of the shopping center a top priority.

Having a distraction nearby don’t just drag patrons to the new place, but the owner might even try to bring anchor tenants from the existing mall to the new one.

This is only fair to the tenants. Especially when they have signed long term leases that run for years.

To be fair to the landlord, the area that he is barred from running a competing site in will be described. Usually by a name of area or a radius distance from the site.



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