Don’t Let Your Landlord Push You Around with Their “Relocation Right”

With strong office markets in many parts of the country, landlords are becoming rather bullish.  In that spirit, they are looking to maximize leasing flexibility in accommodating new and growing tenants.  One leasing flexibility tool that landlords have in their toolbox is the right in the lease to relocate a tenant.   While tenants want to see their landlords succeed in keeping the building well occupied, they are more concerned with maintaining a productive office.  Relocation is extremely disruptive for businesses when they are planning to move at the expiration of their lease; it’s even worse when the landlord issues you a notice out of the clear blue that they are going to relocate you.  Even though the relocation move is typically paid for by the landlord, assuming the tenant has negotiated that into its lease, that is little consolation for the intangible loss in productivity to the tenant’s business.  Outlined below are strategies to fundamentally eliminate this right and, where that is not feasible, to neuter it as much as possible.

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