A lease clause explicitly barring the tenant from conducting certain business activities at the premises, regardless of whether those activities might otherwise fall within a broadly defined permitted use.
Prohibited use clauses are the mirror image of permitted use provisions — instead of defining what a tenant may do, they enumerate activities that are expressly forbidden. Common prohibitions include: operating as a competitor to another tenant, selling food or alcohol (in an office building), conducting adult entertainment, or generating hazardous waste. Shopping center leases often contain cross-tenant prohibited use restrictions coordinated with the center's exclusive use clause network. Tenants should review prohibited uses carefully to ensure they do not inadvertently restrict planned business operations or future pivots. The interplay between permitted use, prohibited use, and exclusive use clauses requires careful abstraction.
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