A go-dark clause gives a tenant the contractual right to stop operating its business and cease all commercial activity at the leased premises while continuing to pay rent, without being in default of the lease. It operates as an exception to any continuous operation obligation that might otherwise require the tenant to maintain active business operations throughout the lease term.
By Angel Campa, Founder · Updated March 2026
For national retail chains and restaurant operators, the ability to close underperforming locations without breaking the lease provides critical operational flexibility during restructuring, brand repositioning, or economic downturns. Landlords oppose go-dark rights because a vacant space reduces foot traffic, harms other tenants, and may trigger co-tenancy rights for neighboring retailers. The presence or absence of a go-dark clause is therefore a high-stakes negotiating point for anchor tenants and major retailers with portfolios spanning hundreds of locations.
Tenants should seek broad go-dark rights with minimal conditions — ideally, the right to cease operations at any time without cause while continuing rent obligations. If the landlord insists on limitations, negotiate a minimum operating period before the go-dark right activates (e.g., must operate for at least 12 months before going dark), and a cap on how long the space can remain dark before the landlord earns recapture rights. Some tenants accept a go-dark right conditioned on maintaining the storefront appearance and basic utilities to preserve center aesthetics.
Unconditional go-dark rights (rare, available only to strong-credit national anchors), conditional go-dark rights requiring continued payment and maintenance obligations, limited dark periods after which the landlord earns recapture rights, and go-dark provisions tied to portfolio-wide closures rather than location-specific decisions.
Lextract extracts these fields directly from your lease PDF when this clause is present:
Continuous Operation Clause
A continuous operation clause requires the tenant to keep the leased premises open and actively conducting business during all required business hours throughout the lease term.
Co-Tenancy Clause
A co-tenancy clause is a lease provision — almost exclusively found in retail leases — that gives a tenant the right to pay reduced rent or terminate the lease if certain anchor tenants or a minimum occupancy threshold in the shopping center falls below a specified level.
Recapture Clause
A recapture clause gives the landlord the right to take back — recapture — the leased premises when the tenant requests consent to assign the lease or sublet the space.
Kick-Out Clause
A kick-out clause is a lease provision that grants the tenant the right to terminate the lease early if sales revenue fails to reach a specified threshold within a defined measurement period.
What accuracy can you realistically expect from AI lease abstraction tools? We break down field-level accuracy rates, where AI excels, where it struggles, and how to validate output.
Compare the top AI lease abstraction tools for commercial real estate in 2026. We review Lextract, Prophia, Kolena, Leasecake, MRI Software, and more — with pricing, accuracy, and use-case guidance.
Free AI lease abstraction tools are fast and easy — but they have real limitations. Here is what free tools deliver, what they miss, and when you need structured output instead.
Upload your lease PDF and Lextract extracts 125+ structured fields with confidence scoring and red flag detection — automatically. Just $20 per lease.
Upload Your Lease