Leases can limit the use of rented space for a number of reasons and in a number of ways. Tenants should be careful about what restrictions end up in leases, especially if the nature of their business is such that what they do will likely evolve.
Exclusive Use of a premise states that no other business in the building or mall can compete with the major anchor tenants. The restrictive use clause prohibits what can be sold. Keep in mind that if a new tenant locates in the building after you and an exclusive clause goes in after you, it may not affect you because it was not in your lease. Often leases have a general provision allowing for landlords to create policies which are effective as if they were part of the lease.
The exclusive clause should mention what the liquidated damages of a violation are so that the tenant doesn’t have to go to court to prove damages. Landlords will want a cure period to deal with the infringing tenants.
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