Consider Four Items When Negotiating Radius Clause

If you’re like many shopping center owners, the leases with your tenants include “percentage rent” provisions that require them to pay you a percentage of their gross sales. As long as gross sales are high, you’ll benefit from a percentage rent arrangement. If a tenant’s competitor in a nearby shopping center draws business away from the tenant and your center, your percentage rent could decrease. And to some degree that’s unavoidable.