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July 2023

Gottlieb Law - Broader Use Provisions in Commercial Lease Agreements

What are Broader Use Provisions in Commercial Lease Agreements?

What are Broader Use Provisions in Commercial Lease Agreements? 1900 1069 Gottlieb Law

Lease agreements form the foundation of a landlord-tenant relationship, defining the rights and responsibilities of both parties. Among the crucial elements of these agreements for commercial properties are the broader use provisions, which establish the parameters for how tenants can utilize the leased premises.

These provisions play a vital role in clarifying the permissible activities and purposes for which the tenant can use the space, while also addressing restrictions and obligations that ensure the property is used in a manner that aligns with the landlord’s interests and regulatory requirements. Read on to learn about the significance of broader use provisions in commercial lease agreements, their key components and considerations and their impact on both landlords and tenants.

What are broader use provisions in commercial lease agreements?

Generally speaking, broader use provisions in commercial lease agreements refer to clauses that define and govern the permitted use of the leased premises by the tenant. These provisions outline the specific activities or purposes for which the leased space can be utilized, as well as how the space cannot be used. They are important because they clarify the intended scope of the tenant’s business operations within the leased property and help establish boundaries and expectations between the landlord and tenant.

The following are some use provisions to consider, whether drafting a commercial lease for an owned property or researching spaces in which to operate a business.

Permitted Use

The lease agreement will typically specify the permitted use of the premises. This may be a general description of the tenant’s business or specific activities allowed. For example, a retail lease might specify that the premises can only be used for a clothing store.

Exclusive Use

In some cases, the tenant may negotiate an exclusive use provision, which grants them the exclusive right to engage in a particular business activity within the leased property. For instance, a GNC in a shopping mall might have an exclusive use provision stating that they are the only business allowed to sell health and wellness products. This prevents the landlord from leasing nearby spaces to competitors (like Vitamin Shoppe) engaged in the same type of business.


The lease agreement may also contain restrictions on certain activities or uses. These restrictions can be aimed at maintaining the property’s integrity, complying with zoning regulations or protecting the interests of other tenants or the landlord. For instance, a lease agreement might prohibit the tenant from using the premises for manufacturing or conducting hazardous operations.

Changes to Use

If the tenant wishes to modify or expand the permitted use of the premises beyond what is initially specified in the lease agreement, it may need to seek the landlord’s approval. The process for obtaining such approval should be outlined in the lease agreement, or the landlord and tenant can collaborate on an updated lease agreement that governs the relationship for the remaining duration.

Compliance with Laws and Regulations

Broader use provisions often include a requirement for the tenant to comply with all applicable laws, regulations, and permits related to their business activities. This ensures that the tenant operates in accordance with legal requirements and maintains necessary licenses and permits. Compliance protects both the landlord and tenant, as landlords are held liable for illegal activity conducted on its property.

Landlord’s Consent

A typical lease agreement will state that the tenant must obtain the landlord’s consent before assigning or subletting the premises. This provides the landlord with control over incoming tenants and the activities they intend to conduct within the leased space.

It’s important for both landlords and tenants to carefully review and negotiate broader use provisions to ensure that they align with their respective needs and expectations. Consulting with experienced legal professionals specializing in real estate or commercial leases can help parties understand the implications of these provisions and negotiate favorable terms.

The Impact of Broader Use Provisions on Landlords and Tenants

Broader use provisions in commercial lease agreements have a significant impact on both landlords and tenants. For landlords, these provisions help maintain control over the use of their property, protect their interests and the interests of existing tenants, and ensure compliance with zoning and regulatory requirements. They provide clarity on the permissible activities and restrictions, enabling landlords to safeguard the property’s value and mitigate potential risks.

On the other hand, tenants benefit from broader use provisions by having clear guidelines on how they can operate their businesses within the leased premises. These provisions provide a framework for expansion or modifications to their business activities, while also granting exclusive use rights in some cases. Overall, broader use provisions foster transparency, protect property values, and facilitate a harmonious landlord-tenant relationship by setting clear expectations for both parties.

Consult with an Experienced Real Estate Attorney

With broader use provisions, landlords can help ensure their tenants’ operations are in compliance with Arizona law, while also protecting the interests of all relevant parties. Investors should partner with an experienced real estate attorney who is familiar with landlord/tenant laws and how they can impact their investments. Gottlieb Law provides industry-leading legal representation for anyone involved in Arizona commercial real estate.  Contact our firm today at 602-899-8188 or schedule an initial consultation on our contact us page.

Gottlieb Law - Arizona Lease Termination Laws - Landlord and Tenant

Arizona Lease Termination Laws: What Every Landlord and Tenant Should Know

Arizona Lease Termination Laws: What Every Landlord and Tenant Should Know 2267 1512 Gottlieb Law

If you’re looking for a viable way to enjoy the benefits of a home without having to commit to a lengthy mortgage, leasing is the way to go in most situations. However, circumstances can arise that make it necessary to terminate a lease agreement early. In Arizona, both landlords and tenants have certain rights and responsibilities when it comes to lease termination.

Understanding these laws can help both parties navigate the process of ending a lease agreement smoothly and legally. In this blog post, we’ll take a closer look at Arizona lease termination laws and what you need to know as a landlord or tenant.

Landlord and Tenant Obligations During an Active Lease

When a tenant and a property owner sign a lease agreement in Arizona, both parties are given specific rights. It’s essential to understand the landlord-tenant laws in Arizona when drafting and terminating a lease agreement.

As a landlord in Arizona, the lease agreement gives you the right to receive rent payment for the entire lease duration, whether or not the tenant is occupying the property. You can hold the tenant accountable for rent payment even after they break the lease, and you can withhold all or part of their security deposit if there is no legal justification for their breach of the agreement. 

Likewise, as a property owner in Arizona, you have specific obligations under the lease agreement. These obligations include providing safe and habitable housing, following statewide landlord-entry rules, and respecting your tenant’s privacy. Failure to fulfill these duties could give your tenant the right to break the lease. Before holding the tenant accountable for breaking the lease, ensure that you’re not responsible for their decision to do so.

When Tenants Can Legally Break a Lease

There are several instances in which tenants can legally terminate a lease agreement, as provided in Title 33 of the Arizona Revised Statutes.

  •       Early termination clause: Some lease agreements have terms for early termination, usually in exchange for a penalty fee.
  •       Active military duty: Lease can be terminated by providing written notice, orders, or a letter from the commanding officer.
  •       Uninhabitable unit: Tenants have the right to a safe and liveable space, which landlords must maintain. If the landlord does not make necessary repairs within the allowable time period, a tenant would be considered “constructively evicted” and is no longer obligated under the lease.
  •       Landlord harassment or privacy violation: Harassment or violation of privacy may justify the termination of a lease. Landlord entry requires two days’ notice, repeated violation of privacy is considered “constructively evicted,” and landlords cannot lock out their tenants.
  •       Domestic violence: Arizona provides special rental provisions for tenants who are victims of domestic violence. Landlords are entitled to verify domestic violence status, and tenants can terminate a lease without penalty once there is proof of domestic violence. Landlords are also obligated to change the locks if requested by the victim.

When Landlords Can Terminate a Lease

If a tenant is behind on rent or breaks a lease rule, the landlord can take back possession of the property or start a legal action to do so. The legal action will follow certain rules and will determine who has the right to live in the property. The court may also require the tenant to pay damages, attorney fees, and costs.

If the landlord wins the legal action, the tenant can appeal the decision, but they have to pay a bond that covers the rent they owe plus any damages, attorney fees, costs, and rent that may be due during the appeal process.

It is important to note that any notice or legal action related to this law does not have to follow a specific form as long as it meets the required content and formatting.

How to Terminate a Lease in Arizona

In Arizona, tenants are not obligated to inform their landlord of their intention to leave when the lease has a fixed end date. However, if the lease is month-to-month, tenants must provide 30 days’ notice. For week-to-week leases, tenants must give 10 days’ notice before the end of the lease.

Tenants in Arizona can choose to deliver the notice of termination either in person or by mailing it to the landlord.

Landlord Obligations After a Lease Termination

When a tenant legally breaks a lease in Arizona, the landlord has a duty called the “duty to mitigate damages” to try to find a new tenant to take over the lease. The landlord cannot simply wait until the lease ends and then hold the tenant responsible for unpaid rent because this is not allowed under Arizona’s eviction laws (A.R.S. § 33-1370). The landlord must make reasonable efforts to re-rent the unit in order to minimize any financial losses.

Hiring a Real Estate Attorney in Arizona

If you are a landlord or tenant in Arizona, you’re going to want to seek legal advice before terminating a lease. An experienced eviction attorney can help you understand your rights and obligations and can represent you in court if necessary.

When hiring an attorney, it’s best to choose someone who is knowledgeable about Arizona real estate law and who has a track record of success in eviction cases.

Gottlieb Law has significant experiences with the challenges of terminating a rental agreement in Arizona. Our firm can help you determine if you have a qualifying cause under state law and pursue the process in court and with law enforcement, if necessary. Contact us today at 602-899-8188 to schedule an initial consultation or make an appointment online.