An uncured landlord default can be a trigger for terminating a lease. For example, the landlord fails to replace worn out AC units thus providing very poor air conditioning. Or perhaps not fixing an ongoing roof leak. This is especially important when reviewing Anchor/Credit tenant leases.

An Anchor tenant may place in their lease the requirement that sales must be at a certain level or they have the right to terminate the lease. (Sales Based provision) Sometimes tenants in a shopping center will place in their lease a Co-Tenancy provision that if the Anchor in the center shuts down, they have the right to terminate their lease. Anchor/Credit tenants will also at times require that if they have to terminate their lease due to a landlord default and that the landlord must make a payment to the tenant to cover their relocation expenses.

Reviewing Commercial Leases