Recapture Clause

Filed Under » ,
Dictionary Says

Definition of 'Recapture Clause'

A provision usually found in percentage leases, especially in shopping-center leases, giving the landlord the right to terminate the lease - thereby recapturing the premises - in the event the tenant does not maintain a specified minimum amount of business. For example, a poorly performing retail shop in a shopping center can damage the shopping center's image and therefore the bottom line of all tenants and the landlord.
Investopedia Says

Investopedia explains 'Recapture Clause'

A recapture clause is intended to protect a landlord by making sure that tenants maintain a certain amount of revenue. The recapture clause allows a means for an underperforming retail store to be removed, opening the space for a more profitable endeavor. A recapture clause also protects a landlord in an instance where the tenant attempts to sub-lease the property for a profit.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Lease

    A legal document ...
  2. Commercial Real Estate

    Property that is ...
  3. Capital Lease

    A lease ...
  4. Operating Lease

    A contract that ...
  5. Gross Lease

    A type of ...
  6. Lessee

    The person who ...
  7. Joint Tenants in Common - JTIC

    A type of ...
  8. Tenants In Common - TIC

    The co-owners of ...
  9. Beneficial Interest

    The right to ...
  10. Party Wall

    In real estate, ...

Articles Of Interest

  1. Should You Buy Property On Leased Land?

    Find out what to consider before investing in a leased-land property.
  2. Tips For The Prospective Landlord

    Investing in rental property can generate serious income, but there's more to it than collecting rent.
  3. Tax Deductions For Rental Property Owners

    Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits.
  4. Retirement Living: Renting Vs. Home Ownership

    Here are three simple questions you should consider when weighing this decision.
  5. Moving Back Home: A Win-Win Situation

    When a young adult moves back home it can be beneficial for their finances and their parents'.
  6. The Benefits And Pitfalls Of Joint Tenancy

    This arrangement allows beneficiaries to access your account without having to go to court.
  7. 6 Tips For Renting An Apartment

    Find out what you can do to find a fabulous apartment to fit your budget.
  8. Rent-To-Own Real Estate Full Of Pitfalls

    Before you consider this type of arrangement, you should be aware of how it works, who benefits and the many things that can go wrong.
  9. Easy Ways To Cut Rental Costs

    If rent payments are crippling your finances, then read on to learn how to save your money.
  10. Insurance 101 For Renters

    If it's time for you to leave the nest, find out how to protect your new home from disaster.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center