The lease provision defining the specific business activities the tenant is authorized to conduct at the premises, limiting the tenant to those stated purposes and prohibiting other uses without landlord consent.
The permitted use clause is one of the most consequential provisions in a commercial lease. Landlords want a narrow, specific use (e.g., "retail sale of women's apparel only") to preserve their right to consent to any business change. Tenants want a broad use clause (e.g., "retail and/or office use for any lawful purpose") to preserve operational flexibility. A use that falls outside the permitted use clause constitutes a default, even if the new use is otherwise legal. In lease abstracts, the permitted use must be captured verbatim — particularly in retail leases where it interacts with exclusive use clauses, co-tenancy rights, and percentage rent calculations.
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