A provision that prohibits the landlord from leasing other space in the same building or shopping center to a direct competitor of the tenant.
Exclusive use clauses are most common in retail and medical settings, protecting a tenant's market share and foot traffic. For example, a specialty coffee shop might negotiate a clause preventing any other tenant from generating more than 10% of gross revenue from coffee sales. Vague language leads to disputes, so precise definitions of "competing goods" and "primary business use" are critical. Tenants often negotiate self-executing remedies -- like the right to reduce rent by 50% or terminate the lease entirely -- if the landlord breaches the exclusivity provision.
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