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Exclusive Use Violation Calculator
Exclusive use clauses bind landlord. This calculator sizes breach exposure.
Total damages
$147,840
Annual lost sales
$616,000
Annual rent loss
$36,960
How the math works
Lost sales = tenant sales × loss %. Rent loss = lost sales × % rent. Total = annual × years.
On $2.8M sales with 22% diversion at 6% percentage rent over 4 years: $148k total direct damages. Plus potential tenant termination rights if breach uncured — full rent shortfall exposure. Exclusives are land mines for landlord operations team — database every one and check before signing new leases.
How to Use
- Enter protected tenant sales.
- Enter expected sales loss %.
- Enter percentage rent rate.
- Enter remaining lease years.
- Read total landlord damages.
Frequently Asked Questions
What's exclusive use?
Lease clause giving tenant sole right to operate specified use within property (or shopping center). E.g., only pizzeria, only optometrist, only national clothing chain. Protects tenant investment; restricts landlord leasing options. Standard in retail leases for sensitive categories.
Damages measure?
Lost sales × % rent rate (if tenant pays % rent). Direct landlord damage: tenant may seek rent reduction or termination. Consequential: tenant sues for full lost profit. Many exclusives carry self-help remedies (offset against rent).
Carve-outs?
Landlord carves out: existing tenants at signing, incidental use (restaurant serving pizza as menu item vs pizzeria), small boxes under square footage threshold, expansions of existing tenants. Tight drafting essential.
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