Tenants Beware the Relocation Clause

What is a Relocation Clause?

Most office leases include a relocation clause which allows the landlord to relocate the tenant to another suite in the building or office park.  Landlords use this provision to move small tenants to make room for larger, growing, and new tenants.

The relocation clause enables the commercial landlord to rent out more space and maximize income.  This clause is almost always found in the first draft of a lease sent by the landlord.

What Can an Office Tenant do about the Relocation Clause?

Tenants should resist the relocation clause during the lease negotiation.  Leased office space is usually chosen for its location, size, and price, among other reasons, and all of them are important. Why would the tenant want to move after they so carefully selected their office space?

Tenants should carefully review the lease, and retain a real estate attorney to review the contract.  If a relocation clause is present, then push back against it in negotiations.  Most landlords will not agree to drop the relocation clause, but larger tenants may succeed in having the provision dropped.  At the very least, tenants should modify the relocation clause so they are properly compensated for any and all costs incurred during a relocation.  Tenants should also ask for additional rent abatement if the landlord chooses to invoke the relocation clause.  The landlord will usually cover the cost of the relocation.

At Golden Group Real Estate, we specialize in tenant representation for office users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.

For more on Golden Group Real Estate, read about our real estate services.  Let us know if we can help you find office space for rent or buildings for sale.  Call us at (630) 805-2463, email us at troy@goldengroupcre.com, or enter your office space search criteria below.

By

June 19, 2019

Schedule an Appointment
Free Market Survey
Request a Survey on Office Buildings & Space Available

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form :(

Real Estate News & Talk
~the RENT Blog~

The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs.  We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.

Check out these great listings!

Schedule a Consultation with our Real Estate Specialists Today

Oak Brook office space, Naperville office space, Downers Grove office space, Lisle office space

  ​​​

.

To schedule a free consultation at our offices in Lombard call us at (630) 805-2463 or email us at troy@goldengroupcre.com to schedule a time to to talk about your real estate needs.

Our tenant and buyer representation real estate services are 100% free to our clients.  We are active commercial real estate brokers and work with all Oak Brook, Naperville, Downers Grove, Lisle, and Dupage County office buildings.  Golden Group Real Estate will show you both listed and unlisted investment properties.

Our Tenant Advisory Process
FIND, NEGOTIATE, ADVISE.

Use every resource to make the right business decisions for you AND your company!

Dupage county real estate services, Dupage county tenant representation

Resources

Stay informed with all the information you need to know when choosing, or moving your company to a new location.

Dupage county real estate services, Dupage county tenant representation

Real Estate News & Talk

View our collection of articles on a wide variety of topics related to real estate and business needs

Dupage county real estate services, Dupage county tenant representation

Networking Events

Come out to one of our events to meet and develop business relationships to last a lifetime

Dupage county real estate services, Dupage county tenant representation

Reviews & Social Media

We ensure every client gets the property they need, the terms they want, and
what's critical for their business.

5S640 Ridgeview Lane Naperville, IL 60540
Golden Group Real Estate