It’s Not Very Far Away

Relocation to another building is one thing, but what about relocation in the same building or complex — when the landlord asserts a unilateral right to relocate you. It happens! Landlords use this process when they need to accommodate a large tenant.

When you first move to a new suite, you agree on the space and business terms, or you don’t sign the lease and look somewhere else. But when the lease contains a landlord right to relocate you, the expenses can fall on the tenant instead. Moving costs including furniture and IT/Phones/Wiring can pile up quickly, and if your business depends on a complicated infrastructure, it can take weeks or even months to get all the bugs out.

If you are leasing less than 5,000 square feet on a large floor, landlords generally demand a right to relocate. However, this right should include a new suite with the same functionality and similar size and interior design. Relocation clauses should also require the landlord to pay for remodeling the new suite and all other costs necessary to bring your business to the same operational level you initially required.

Internal relocations are generally expensive for the landlord as well, but tenants must at least ensure they are prohibited until after a tenant moves into their initial space.