[RPPTL LandTen] Radius restriction in retail lease?

[David Weisman]

George:

The size of the radius depends upon the uniqueness of the service provided. In your case, the tenant would have to draw sales from the entire state and be one of a very few who does so.

David  Weisman
Board Certified Real Estate Lawyer
Greenspoon Marder, P.A.
200 E. Broward Blvd., Suite 1800
Fort Lauderdale, FL 33301
Phone 954-491-1120 Ext. 1015
Direct Phone 954-343-6941
Direct Fax 954-343-6942

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From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of George Pincus
Sent: Thursday, February 12, 2015 11:19 AM
To: landten at lists.flabarrpptl.org
Subject: [RPPTL LandTen] Radius restriction in retail lease?

In non-compete agreements in the employment law context, it is well settled law in Florida that the restricted geographic area must be reasonable and bear a reasonable relationship to the subject matter of the underlying business (I think I stated that correctly).

In a retail lease context, in negotiating a radius restriction clause, I typically use an agreed upon number of miles as the geographic area where the Landlord or Tenant is prohibited from having a competitive user or similar operation in another property.

We are representing a Landlord that want to limit its tenants from having other locations within the entire State of Florida.  I am leery of such a broad restrictive covenant in a lease and want to manage  the client's expectations on enforceability (and cover my backside so the client doesn't come back and claim I told them this was enforceable when the tenants breach it).

Does anyone have any relevant experience with this issue?

Thanks very much.


George A. Pincus, Esq.
Stearns Weaver Miller Weissler
  Alhadeff & Sitterson, P.A.
New River Center, Suite 2100
200 East Las Olas Boulevard
Ft. Lauderdale, FL 33301
Telephone: 954-766-9705
Facsimile:    954-766-9719
E-mail: gpincus at stearnsweaver.com<mailto:gpincus at swmwas.com>
www.stearnsweaver.com<http://www.stearnsweaver.com/>

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