A co-tenancy clause links specified lease rights or obligations to the presence, opening or operation of other tenants in a retail property.
How it works in retail
It may refer to a named anchor or a minimum level of occupied space. Any remedy depends on the exact triggers, conditions and notice requirements in the agreement.
A retail example
A lease contains an agreed remedy if a named anchor closes and is not replaced within the specified period.
What to keep in mind
Co-tenancy does not automatically permit reduced rent or termination. Lease language, local law and the facts determine whether any remedy applies.
Sources & further reading
ICSC: Co-tenancy lease provisions
Examples are illustrative. Terminology and measurement conventions can vary by business and market.