Commercial Leases and Competition

It is neither good nor desirable to eliminate all competition.  But that said, no one wants their biggest competitor to move in right next-door.  It can put them out of business. 

Keeping competitors at bay is not always possible, but when a company rents space in a commercial building there are some provisions in a lease that can protect them.

First of all, it can be possible to keep a direct competitor out of the building or complex you are in entirely. 

But even when that is not possible, concessions can be negotiated in a lease for when a competitor moves in.  Businesses can request a rent reduction or better signage.  Or they can have an escape clause if they lose too much revenue to the competing business.The best time to negotiate these things is before signing a lease.  Before signing, the signatory’s leverage is virtually always strongest.

But sometimes there are ways to fix things after a competitor moves in.

Leases generally need to be renewed.  A business owner may ask for concessions if they are to renew.

Sometimes owners do not even read their leases before signing (that is a TERRIBLE idea), but it is possible to get lucky.  Non-compete conditions are common in commercial leases.  And sometimes businesses are protected by a non-compete they were not even aware of.

So not matter where you are in your lease, if a competitor is damaging your business, it is worth having your lease looked at by a competent attorney to see what can be done.