There is no question that an exclusive use clause can be an
asset to the retail tenant. Whether the tenant in question is a
household name or a mom-and-pop store just starting out,
eliminating the competition within the tenant's own pond can
allow the tenant to be the big fish in that pond. Coupled with a
well-chosen location in a vibrant center, an exclusive use clause
can give the tenant an edge and help ensure a steady stream of
potential patrons from the tenant's own backyard.
Whether to grant an exclusive use often involves a more nuanced
analysis on behalf of the retail landlord. The grant of exclusivity
to one tenant today narrows the pool of potential tenants from
which a landlord can draw tomorrow. No landlord wants to make it
harder than it has to be to fill vacant space, or have to turn down
a request from an existing tenant to change its use. On the other
hand, demonstrating a willingness to work with a prospective tenant
as to exclusivity may land that
