Investopedia

Continue to Site »

Co-Tenancy Clause

Filed Under » , , ,
Dictionary Says

Definition of 'Co-Tenancy Clause'

A common clause in retail lease contracts that allows tenants to get a reduction in rent from landlords if key tenants or a certain number of tenants leave the space. A large or key tenant is a big draw for traffic, especially in malls, and are often one of the major reasons a tenant chooses to locate in a specific mall. A co-tenancy clause provides the tenant with some form of protection in the form of reduced rent to compensate for loss of traffic.
Investopedia Says

Investopedia explains 'Co-Tenancy Clause'

Co-tenants are typically the anchor tenants in a mall. They are the large, popular stores that attract increased traffic that spills over to other stores in the same location. In times of economic stress, when some retailers are forced to close outlets to shave costs, landlords usually end up losing a lot of revenue. Exercising co-tenancy clauses further amplifies the loss of revenue as remaining tenants demand a reduction in rent, the stress of which could ultimately lead to bankruptcy.

Articles Of Interest

  1.

    A Guide To Real Estate Derivatives

    These instruments provide exposure to the real estate market without having to buy and sell property.

  2. Prepare To Sell Your Business

    Follow these tips to ensure you get the most out of your hard work.

  3. Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.

  4. Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.

  5. Defeasance Reduces Commercial Real Estate Fees

    Try this alternative to short-term variable-rate financing when using leverage to buy property.

  6. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  7. Should You Head Back To Business School?

    Find out if an MBA is necessary for you to reach your professional goals.

  8. Women And Finances: Is There A Gender Bias?

    Uncover some very complex reasons for female gender biases in the finance world.

  9. Female Entrepreneurs Are Surpassing Their Male Counterparts

    The world of entrepreneurship is constantly changing; the last year has seen a significant shift in the performance of female entrepreneurs.

  10. Small Business: Speed Up Receivables To Avoid A Cash Crunch

    Waiting for customers to pay can be a losing game. Look to factoring for quicker cash.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center