PLEASE EXPLAIN A "BLACK OR DARK CLAUS" AS USED IN A MALL LEASE SETTING

In Leasing Property - Asked by BRUCE B. - Jan 5, 2010
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Answer(s)

Ralph F.
Broker/Agent
Kaneohe, HI

I believe it has to due with hours of operation.

Jan 5, 2010
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Robert C.
Broker/Agent
Oakland, CA

Tenant "going dark" rights: Gives the tenant the right to close the store or receive a substantial reduction in the rent if a major tenant or several other tenants go out of business, i.e., "go dark." This clause is used mainly when leasing retail space in shopping malls

Jan 5, 2010
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Ian F.
Broker/Agent
Newport Beach, CA

A "Go Dark" provision typically allows the Tenant to close their doors but requires them to still pay rent. This allows the Tenant to lower their overall financial obligation (no employees, no utilities, etc.). The Tenant is still liable for the remaining rental payments and net charges for the duration of the lease. The Landlord will often have the right, but not the obligation, to recapture the premises and release to another tenant. Consult a real estate atty. for additional details, as always, the devil is in the details. Best of luck.
-Ian
www.ccpire.com

Jan 6, 2010
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