Anchor Tenant Vacancy Clause

• Category: Leases - Contracts
• State: Multi-State
• Control #: US-CL-520-1
• Format: Word; Rich Text

Description

Examples of clauses regarding Anchor Tenant Vacancy; Tenant rights to, or not to, remain in the premises if the "Anchor Tenant" vacates the premises.

An Anchor Tenant Vacancy Clause (ATC) is a contractual provision that is typically included in a lease agreement between a landlord and a tenant. It provides the landlord with a certain level of protection and financial security in the event that the tenant (i.e. the anchor tenant) terminates their lease or vacates the premises for any reason. There are two main types of ATV Cs: standard and reverse. A standard ATC requires that the anchor tenant pay a specific amount of rent to the landlord in the event that they vacate the premises prior to the lease expiration date. This is meant to protect the landlord from financial losses due to the tenant’s early departure and to ensure that the rental income from the property remains consistent. A reverse ATC requires that the landlord pay the tenant a specific amount of rent in the event that the anchor tenant vacates the premises prior to the lease expiration date. This is meant to protect the tenant from financial losses due to the landlord’s early termination of the lease.