{"id":36791,"date":"2019-12-18T19:10:02","date_gmt":"2019-12-18T17:10:02","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=36791"},"modified":"2025-05-22T13:09:36","modified_gmt":"2025-05-22T10:09:36","slug":"why-landlords-should-consider-continuous-operations-clauses","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/12\/18\/why-landlords-should-consider-continuous-operations-clauses\/","title":{"rendered":"Why Landlords Should Consider Continuous Operations Clauses"},"content":{"rendered":"\n

NYC-based\u00a0boutique law firm\u00a0Pardalis & Nohavicka<\/a>\u00a0brings the latest legal updates from the world of real estate to PropertyShark.\u00a0Pardalis & Nohavicka\u00a0handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions,\u00a0currently litigating and representing clients throughout the United States and around the world.<\/em><\/strong> <\/p>\n\n\n\n

With the holiday season in full effect, the retail business in New York City is booming. In fact, \u00a0holiday sales are expected to rise by as much as 4%<\/a>. As such, landlords can expect their retail tenants to bring in more customers than ever. <\/p>\n\n\n\n

But, what happens if a tenant decides to shut down its operations in\nthe middle of the busiest season of the year? As a landlord, avoid this kind of\nscenario by including special clauses in your leases.\u00a0 <\/p>\n\n\n\n

Continuous Operations Clause <\/strong><\/p>\n\n\n\n

A handy clause for landlords of retail tenants in shopping centers is\nthe continuous operations clause. This can often be implied, but it\u2019s in your best\ninterest to get it in writing. This clause ensures that the tenant is legally\nobligated to carry out its operations throughout the duration of the agreed-upon\nterm.<\/p>\n\n\n\n

Essentially, this type of clause is a form of protection for landlords.\nFor example, it protects your income by ensuring you won\u2019t lose rent. It also\nprotects the image of the overall shopping center; when customers see vacant\nspaces, they tend to shy away from the shopping center altogether. Further\neffects of vacancies in shopping centers may include decreased foot traffic, reduced\nsales and discomfort among other tenants.<\/p>\n\n\n\n

A continuous operations clause typically states the exact premises that\nmust remain open during the business hours specified in the lease. In some\ncases, it might even state the number of days a store must be open each week. Additionally,\nthe clause may also cite the landlord\u2019s rights of re-entry upon the tenant\u2019s non-compliance.\n<\/p>\n\n\n\n

Go-Dark Clause<\/strong><\/p>\n\n\n\n

In some cases, tenants may not be at fault for terminating their\noperations during the lease term. A special clause that allows them to do so is\nknown as a \u201cgo-dark\u201d clause. <\/p>\n\n\n\n

\u201cGoing dark\u201d means that the tenant may vacate their space, but that they\nare still liable for rent during the agreed-upon term. Basically, this is an\nescape plan for tenants who may believe the leased premises is unprofitable and\nno longer suits their business.<\/p>\n\n\n\n

With these precautionary clauses in place, landlords are guaranteed to minimize their exposure to risk and keep their shopping centers merry and bright. <\/p>\n\n\n\n

Authors:<\/strong><\/h4>\n\n\n\n
\"Taso<\/a><\/figure><\/div>\n\n\n\n

Taso Pardalis<\/em><\/strong>\u00a0is a founding partner of the Law Offices of Pardalis and Nohavicka, a leading full- service NYC law firm with offices in Manhattan, Queens and WeWork. Taso may be a well-known attorney with many cases making headlines in major media outlets, but at heart, he is a true entrepreneur that believes in supporting the small business community. His areas of concentration are: Intellectual Property, Trademarks, Corporate, Business Law and Real Estate Law.<\/em>
______________<\/p>\n\n\n\n

<\/p>\n\n\n\n

\"Nataly<\/a><\/figure><\/div>\n\n\n\n

Real Estate and Corporate Transactions Attorney\u00a0\u00a0Nataly Goldstein<\/a>\u00a0<\/strong>is a graduate of Cardozo School of Law, where she served as\u00a0President of the Real Estate Law Association.\u00a0 She is experienced in both residential and commercial real estate transactions, as well as representing large banks, such as Wells Fargo and Citibank.<\/em><\/p>\n\n\n\n


______________<\/p>\n\n\n\n

\"Sofia<\/a><\/figure><\/div>\n\n\n\n

Sofia Stefanou<\/strong>\u00a0is a law clerk at Pardalis & Nohavicka. She is currently a student at NYU\u2019s Schack School of Real Estate. Sofia is a member of NYU\u2019s Undergraduate Real Estate Club, Women in Real Estate Club, and Hellenic Heritage Association. She is currently a member of the real estate law team at Pardalis & Nohavicka.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

NYC-based\u00a0boutique law firm\u00a0Pardalis & Nohavicka\u00a0brings the latest legal updates from the world of real estate to PropertyShark.\u00a0Pardalis & Nohavicka\u00a0handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions,\u00a0currently litigating and representing clients throughout the United States and around the world. With the holiday season in full…<\/p>\n","protected":false},"author":49,"featured_media":36795,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9499,796],"tags":[11097],"class_list":["post-36791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","category-how-to","tag-real-estate-law"],"yoast_head":"\nWhy Landlords Should Consider Continuous Operations Clauses - PropertyShark Real Estate Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2019\/12\/18\/why-landlords-should-consider-continuous-operations-clauses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Landlords Should Consider Continuous Operations Clauses\" \/>\n<meta property=\"og:description\" content=\"NYC-based\u00a0boutique law firm\u00a0Pardalis & Nohavicka\u00a0brings the latest legal updates from the world of real estate to PropertyShark.\u00a0Pardalis & Nohavicka\u00a0handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions,\u00a0currently litigating and representing clients throughout the United States and around the world. 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