Operational

Operating Hours Requirement

A lease obligation requiring the tenant to keep the premises open for business during minimum specified hours, days, or seasons — most common in retail and shopping center leases where foot traffic benefits all tenants.

Extended Definition

Operating hours requirements are typically imposed by landlords in retail centers to ensure the center maintains consistent traffic levels. They may specify minimum daily hours (e.g., 9 a.m. to 9 p.m.), minimum days per week, and holiday operating requirements. Violations of operating hour obligations can trigger default proceedings and, in some leases, liquidated damages. Operating hours requirements interact with continuous operation clauses — a tenant who closes early regularly may be breaching both. Tenants should negotiate exceptions for construction, renovation, inventory, force majeure events, and reduced hours when foot traffic data supports it.

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