The tenant relocation clause is the landlord’s right to move your company into a different space within the same building or building campus during your lease term. It’s a common term that is most often used to accommodate a larger tenant’s requirement. And it can have a big impact on your business.

To protect yourself from an unexpected relocation, try eliminating this landlord right altogether. If that’s not possible, make sure to negotiate significant notice time and have your lease language state that any new space will match your existing space in terms of business needs, such as size and design.

Make sure that your landlord is set to cover all costs, including moving costs and smaller costs like updating business cards. Also, if your new space is smaller, you should pay less for rent. If your new space is larger, you should be allowed to pay on your initial square footage only. Most importantly, limit the possibility of relocation to one time per lease term and that you can terminate your lease if your conditions are not met.

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And if you would like to make sure you and your lease are protected against unexpected costs, reach out to a Rokos Advisors broker. We are here for you and happy to help.