This presentation was prepared by FMC's Sheldon Disenhouse for the Fall Real Estate Seminar. It looks at Relocation Rights in Leases with a focus on Standard Lease Provisions, Landlord Rationale, Tenant Concerns and related cases.
3. • “The Landlord shall have the right, in its sole discretion, from time to time,
to relocate the Premises to other premises within the Project having
approximately the same area as the Premises. The Landlord shall be
entitled to designate the location of the new premises and the date by
which the Tenant must relocate to the new premises.”
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5. Tenant Concerns
• What is “comparable space”
– Retail
• Size
• Frontage
• Tenant mix
• Proximity to entrances, exits, major tenants
• Availability of services
– Office
• Height in building (low floors/high floors)
• Views
• Availability of services
• Will there be down‐time?
• Timing (not during high season)
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6. Who Pays What?
• Usually the move is at the Landlord cost
– Construction of new space
• Plans
• Base building
• Leasehold improvements
– Move existing fixtures/purchase new fixtures
– Actual move
• Timing
– Signage/announcements
– Stationery
– Indirect costs
– Unamortized costs
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9. 2. What does “in a location, size and finish similar to that of the Demised
Premises” mean?
Court → “…a proper interpretation … of the words “similar location” would
indicate compatibility with the business – attractive features of the
originally agreed location, which would include criteria of shopper traffic
flow, visibility and exposure.”
See: Stonegate Enterprises Ltd. V. West Oaks Mall Ltd. 1 R.P.R. (4th ) 113
(2002‐BCSC)
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