Exclusive Use Clause Value Calculator

Exclusive use clauses protect tenant from in-center competition.

Tenant annual sales

Cannibalization %

Lease years remaining

Profit margin %

Exclusive use value

$672,000

Sales at risk

$1,200,000

Profit at risk annual

$96,000

How the math works

Sales at risk = annual × cannibalization. Profit at risk = sales × margin. Exclusive value = profit × years.

$8M × 15% = $1.2M sales risk. × 8% margin = $96k/yr × 7 = $672k exclusive use value.

How to Use

Enter tenant annual sales.
Enter expected competitor cannibalization %.
Enter lease years remaining.
Read exclusive use value.

Frequently Asked Questions

How it works?

Landlord agrees not to lease to direct competitors in the same center/building. Typical retail: no competing grocery, no competing pharmacy, no competing hardware store. Office: less common but major HQ tenants sometimes negotiate.

Typical definitions?

Narrow (specific business type or product line) or broad (any similar business). Sophisticated tenants negotiate narrow definition to limit dispute risk. Broad clauses create landlord exposure to every future leasing decision.

Damages if breached?

Liquidated damages: 50% rent reduction until breach cured. Or full lease termination with damages. Or injunction (stop competitor opening). Tenant picks remedy typically. Major litigation risk for landlord — budget accordingly.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.