Co-Tenancy Provisions in Retail Leases

Co-tenancy clauses entitle tenants to rent reductions or early termination rights when anchor occupancy falls below lease-defined thresholds — but those thresholds are rarely monitored systematically. When an anchor vacates or a center-wide occupancy floor is breached, the obligation to notify affected tenants and adjust billing activates immediately. In practice, the trigger conditions are complex enough that they frequently go unmonitored until a tenant raises the issue directly, at which point retroactive adjustments compound the exposure.