Conditions requiring the continuous operation of specific anchor tenants.
Also known as: Operating Co-tenancy
By Angel Campa, Founder · Updated March 2026
When an anchor tenant closes during the lease term, foot traffic can drop 30-50%, devastating inline tenants' sales. Ongoing co-tenancy provisions give the tenant relief (rent reduction or termination right) if key anchors close. Without this protection, a tenant paying $5,000/month in a shopping center could see sales drop by half when the anchor leaves, while remaining obligated for full rent for the remaining lease term.
In the "Co-tenancy" section alongside opening co-tenancy provisions. Look for requirements tied to named anchor tenants or minimum occupancy levels that must be maintained throughout the lease term, not just at opening.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the ongoing co-tenancy from your lease PDF. The AI searches for the field name and common aliases like "Operating Co-tenancy" across 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.
Co-tenancy Remedy
The tenant's recourse if co-tenancy fails.
Alternative Rent
The modified rent structure implemented during a co-tenancy failure period.
Opening co-tenancy applies only at the start -- conditions must be met before the tenant opens. Ongoing co-tenancy applies throughout the lease term. If a named anchor tenant closes or occupancy drops below the threshold at any point during the term, the tenant's remedies are triggered.
Named anchors vary by center type. In malls, tenants name specific department stores or major retailers. In strip centers, the grocery anchor or big-box retailer is typically named. Some clauses specify categories (e.g., "at least one national grocery chain") rather than specific brands for flexibility.
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