Net lease glossary
Radius Restriction
A lease clause prohibiting the tenant from opening another competing store within a set distance of the leased property.
A radius restriction bars the tenant from operating another location, sometimes including affiliated brands, within a specified distance of the premises. Landlords use it to protect sales at the property, which matters most when percentage rent or co-tenancy is involved. National tenants often resist radius clauses or limit their remedies. A tenant relocating to a newer building nearby is a key risk in net lease, so the presence or absence of a radius restriction is worth noting.