Net lease glossary
Continuous Operation Clause
A lease covenant requiring the tenant to keep the business open and operating during specified hours for the lease term.
A continuous operation clause obligates the tenant to keep its business open, usually during stated days and hours. It is the opposite of a go-dark right. Anchor and national tenants often resist these covenants, while landlords of multi-tenant centers value them because a dark anchor can trigger co-tenancy problems. In single-tenant net lease, continuous operation clauses are less common, but their presence or absence affects how investors assess dark store risk.