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Aug 13

Written by: GCP Broker
8/13/2009 9:35 AM 

After the issue of rent has been determined most leases will go into the use and occupancy of a building and the specific leased space.  These sections must also be reviewed as they can limit hours of operation, use of the leased space, on site advertising or signange, and various other things that will be key to any business operation.

Landlords will try to limit the use of the propery to a specific type of use; not just "a retail operation" but "a ladies retail boutique".  Although I have seen few landlords invoke this section as a reason for default (unless a contracted tenant make-up provision exists in your or other tenants leases) it is something that must be reviewed.

The other big item in the use and occupancy sections is signage. You may want a multi-colored, lighted, spinning sign to advertise your custom paint shop but that may not be allowed.  Signage becomes important to landlords because they want the building to present a consistent look.  If you do not see what you need in this section, negotiate for it and develop a signage clause that will work for you. 

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