The geographic distance within which a tenant cannot open a competing location.
By Angel Campa, Founder · Updated March 2026
Radius restrictions limit where the tenant can open additional locations, protecting the landlord's percentage rent income. A 5-mile radius restriction in a densely populated metro area could effectively prevent the tenant from opening any additional stores in the market. For growing retail chains, an overly broad radius can be a deal-breaker. The restriction must be balanced against the tenant's expansion plans and the market's competitive dynamics.
Found in the "Percentage Rent" or "Radius Restriction" section, typically expressed as a distance in miles from the leased premises. Some leases use drive time or specific geographic boundaries instead of a radius.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the radius restriction 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.
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.
Alternative Rent
The modified rent structure implemented during a co-tenancy failure period.
Radius restrictions commonly range from 2 to 5 miles. Urban areas may use 1-3 miles due to population density, while suburban areas may extend to 5-10 miles. Some leases define the restriction by drive time (e.g., 15-minute drive) rather than straight-line distance.
Generally yes, as long as they are reasonable in scope, duration, and geographic area. Courts may strike down overly broad restrictions as unreasonable restraints on trade. Restrictions tied to a legitimate interest (protecting percentage rent) are more likely to be upheld than blanket non-compete provisions.
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