It’s Not Very Far Away

Relocation to another building is one thing, but what about relocation in the same building - 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 either control the site, the type of office space and the terms, or you don't sign the contract and look somewhere else. But when the landlord negotiates the right to relocate you, the expenses can fall on the tenant instead. Development costs such as IT and office furniture can quickly pile up, 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 larger floor, landlords generally demand a right to relocate. However, this right should include a new suite with the same functionality and similar interior design. Relocation clauses should also require the landlord to pay for the costs of the move including remodeling the new suite, notification of clients and vendors and any other matters necessary to bring your business to the same operational level you initially enjoyed.

With that said, in many transactions where we have represented tenants, we have been successful in eliminating this clause from a lease.