How can corporate tenants negotiate a "relocation" clause in a lease agreement?

3 Limit the frequency

Another way to protect yourself from the disruption of relocation is to limit the frequency of the clause. You can negotiate a cap on the number of times the landlord can invoke the clause during the lease term, or a minimum interval between each relocation. You can also exclude certain periods from the clause, such as the first or last year of the lease, or during peak seasons or major events.

4 Choose the space

One of the most important aspects of the relocation clause is the quality and suitability of the alternative space. You should avoid agreeing to a clause that allows the landlord to relocate you to any space of his or her choice, as this may result in a loss of visibility, accessibility, or functionality. Instead, you should try to specify the criteria for the new space, such as the floor, the size, the layout, the amenities, and the proximity to your original space. You should also have the right to inspect and approve the new space before the relocation.

5 Negotiate an exit

Finally, you should negotiate an exit option in case the relocation clause is invoked and you are not satisfied with the new space or the terms of the relocation. You should have the right to terminate the lease without penalty if the relocation is unreasonable, detrimental, or unacceptable to you. You should also have the right to terminate the lease if the landlord fails to provide you with adequate notice, compensation, or alternative space.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?