Non-Competes in Commercial Leasing Explained
If you’re looking forward to leasing space in a commercial real estate building such as a shopping center, it might be a good idea to have a non-compete clause inserted in the lease agreement. In this guide, you’ll learn everything you need to know about non-competes in commercial leasing:
What Is a Non-Compete Clause?
In a commercial lease, a non-compete clause is an agreement between a potential client and a landlord that the property owner will not rent out the space to a business that draws the same customers as the tenant or a competitor of the tenant. This means that the landlord will not just rent out the remaining commercial spaces to non-competing businesses but will also need to include a clause in those agreements that prohibits those tenants from engaging in specific business activity.