Use Clause, Exclusives & Co-Tenancy on an Assumed Lease
A lease can be a great deal and still be useless to you if its use clause does not permit the business you plan to run.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not legal advice.
Overview
Before you assume a lease, confirm that it actually permits your intended business. The use clause, any exclusive granted to other tenants, and co-tenancy and continuous-operation provisions all shape what you can do in the space.
These operational terms can be the difference between a usable lease and an expensive mismatch.
Topics to check
The use clause defines what the premises may be used for. A narrow clause ("for the operation of a [specific] business and no other purpose") may not cover the business you intend to run, and changing the permitted use usually requires the landlord’s consent. Confirm the clause permits your use, or make landlord approval of a use change a condition of the deal.
A lease you cannot use for your business is worth little, no matter how good the rent.
Lease (Cornell LII Wex)In multi-tenant properties, other tenants may hold exclusive-use rights that restrict what you can sell or do, and the landlord may have given prohibited-use covenants. Conversely, the lease you are assuming may include an exclusive in your favor — valuable, but confirm it survives the assignment.
Check both the restrictions on you and the protections for you, and whether each transfers.
Covenant that runs with the land (Cornell LII Wex)Retail leases may include co-tenancy clauses (your rent or obligations change if anchor tenants leave or occupancy drops) and continuous-operation or "go-dark" provisions (you must keep operating, or the landlord gets remedies). Understand these before you assume the lease, because they affect both your flexibility and your risk if the center’s tenancy changes.
Confirm any co-tenancy protection you are counting on actually transfers to you.
Key takeaways
- Confirm the use clause permits your intended business before assuming the lease.
- Changing the permitted use usually needs landlord consent — make it a condition if needed.
- Other tenants’ exclusives can restrict you; an exclusive in your favor must survive the assignment.
- Co-tenancy clauses can change your rent if anchors leave; confirm they transfer.
- Continuous-operation/go-dark clauses limit your flexibility and create landlord remedies.
Official resources
Legal-review notes
Guide confidence marker: Medium confidence.
- Use, exclusive, and co-tenancy provisions and their transferability depend on the lease; confirm with counsel.
- Whether a covenant or exclusive runs with the land or is personal is fact-specific and varies by state.
Frequently asked questions
Can I run my business under an inherited lease?
Only if the use clause permits it. A narrow use clause may not cover your intended business, and changing the permitted use generally requires landlord consent. Confirm the clause works for you, or make landlord approval of a use change a condition of the deal.
What is an exclusive-use clause and does it transfer?
An exclusive gives a tenant the sole right to a certain use in a property and can restrict what neighboring tenants do. The lease you assume might be restricted by another tenant’s exclusive, or protected by one in its favor — confirm any exclusive you are counting on survives the assignment.
What is a co-tenancy clause?
A retail-lease provision that adjusts your rent or obligations (or lets you terminate) if key anchor tenants leave or occupancy falls below a threshold. It can protect you when a center declines, but confirm the protection actually transfers to you as the assignee.