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ARTICLE · 14 MAY 2014

What’s The Use? Use Clauses In Commercial Leasing

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Most retailers and landlords will have seen the recent announcement by Loblaws.

CanadaReal Estate and Construction
Christopher C. Pardell
Christopher C. Pardell
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Most retailers and landlords will have seen the recent announcement by Loblaws wherein they stated that they were going to start selling fresh food in certain Shoppers Drug Mart locations, the perfect example of the evolution of a retailer.

In the lease context, the evolution of a retailer is not something that is necessarily a welcome phenomenon. Landlords and other tenants prefer the certainty of status quo. Evolution of a retailer's use signals potential increased competition for other tenants and also challenges the landlord's ability to lease other premises.

Getting the right tenant mix is important to both the landlord and tenant. However, this puts the landlord and tenant at odds over the use clause.

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