The particular location within the the center was critical to our client’s business and the new spaces offered as substitute would dramatically cut revenue. Furthermore, the relocation clause had highly unfavorable terms. While our client had specific trade dress which required a specialized and cost-intensive build-out, the relocation process offered by the landlord would not be able to deliver a satisfactory build-out without substantial costs to our client in both money and time. The client did not want to lose one of its best-performing locations yet both the client and landlord believed that the client must comply with the relocation provision plainly in the lease.
After a review of the commercial lease and the facts on the ground, we determined a strategy to be able to reject in good faith, based on one word in particular, the substitution spaces provided by the landlord as improper according to the terms of the relocation clause. While this national landlord argued otherwise and came on strongly to try to accommodate the new anchor tenant, the landlord ultimately withdrew the relocation notice.