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Lease Negotiation Tip #1 – The Use Clause
Most commercial leases contain a use clause. The use clause is a provision that states the purpose for which the tenant may use the leased space. This clause can range from very general to very specific. For example, a common general use clause will state, “The Premises may be used for any legal purpose.” A more specific use clause provision may read, for example, “The Premises shall be used for the operation of a salon providing hair care and aesthetician services. The Premises shall not be used for the retail sale of any beauty and/or hair care products, except that Tenant may utilize space in the front of the salon, not to exceed an area of 25 square feet, for the sale of the products of Tenant’s choice.”
When negotiating your commercial lease, be sure that you make the use clause as general and vague as possible. This allows you flexibility in the products and services you provide as your business grows.