The modified rent structure implemented during a co-tenancy failure period.
By Angel Campa, Founder · Updated March 2026
Alternative rent defines the reduced payment the tenant owes when co-tenancy conditions fail. Typically structured as the greater of a fixed minimum or a percentage of gross sales, it aligns the tenant's rent with reduced foot traffic. The difference between full rent and alternative rent represents the tenant's monthly savings during the co-tenancy failure period. On a $10,000/month lease, alternative rent of $3,000/month saves $84,000 over 12 months of anchor vacancy.
In the "Co-tenancy" section alongside the co-tenancy remedy provisions. Look for language about "alternative rent," "reduced rent," or "percentage rent only" during the failure period.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the alternative rent from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Exclusive Use
A covenant preventing the landlord from leasing to direct competitors in the center.
Radius Restriction
The geographic distance within which a tenant cannot open a competing location.
Opening Co-tenancy
Conditions requiring specific occupancy levels before the tenant is obligated to open.
Ongoing Co-tenancy
Conditions requiring the continuous operation of specific anchor tenants.
Co-tenancy Remedy
The tenant's recourse if co-tenancy fails.
Common structures include: (1) percentage of gross sales only (no base rent), (2) the greater of a reduced base rent or percentage rent, or (3) a flat percentage reduction of base rent (e.g., 50% of base rent). The first option most closely aligns rent with actual business performance during the co-tenancy failure.
Alternative rent typically applies for a defined cure period (12-18 months) during which the landlord attempts to restore the co-tenancy condition. If the condition is not restored, the tenant's right to terminate kicks in. Some leases allow alternative rent to continue indefinitely as an alternative to termination.
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