What triggers a co-tenancy clause?

Typically, a co-tenancy clause is triggered when a named anchor tenant or a specified number of tenants close, vacate, or cease operations. The specific trigger depends on the lease language. Common triggers include the anchor going dark for more than 90-180 days or overall property occupancy dropping below a stated threshold.

Does a co-tenancy clause affect my CAM obligations?

It should. A well-drafted co-tenancy clause reduces not just base rent but also CAM obligations. If the property is half-empty, remaining tenants should not bear the full burden of maintaining common areas designed for a fully occupied center. Negotiate this explicitly.

Can CAMAudit help if my co-tenancy condition has been triggered?

CAMAudit can verify whether your pro-rata share and CAM charges have been properly adjusted during a co-tenancy failure. If you are paying full CAM despite a co-tenancy trigger, the audit report documents the overcharge and supports your dispute.

Co-Tenancy Clause

Last updated: April 2026

By Angel Campa, Founder

Co-tenancy clauses protect you when anchor tenants leave, but without one you are stuck paying full CAM for a property losing 15-25% of its traffic.

What Is a Co-Tenancy Clause?

A co-tenancy clause ties certain lease obligations (typically rent and CAM payments) to the occupancy status of other tenants in the property, usually anchor tenants. If a specified anchor tenant closes or vacates, the co-tenancy clause may allow the tenant to reduce rent, pay percentage rent only, or terminate the lease entirely.

Why This Clause Matters for CAM Audits

In retail properties especially, the value of a tenant's location depends heavily on neighboring tenants and anchor stores that drive foot traffic. When an anchor tenant closes, remaining tenants suffer reduced traffic and sales but may still be paying full CAM charges for a property operating well below capacity. Co-tenancy clauses provide a financial safety valve in these situations.

Sample Lease Language

“If, at any time during the Lease Term, the Anchor Tenant (defined herein as a tenant occupying 25,000 square feet or more) ceases to be open for business for a continuous period exceeding one hundred eighty (180) days, Tenant shall have the right to pay reduced rent equal to the lesser of Minimum Rent or six percent (6%) of Gross Sales until such time as the Anchor Tenant space is re-tenanted and open for business. If the vacancy continues for more than twelve (12) months, Tenant shall have the right to terminate this Lease upon sixty (60) days written notice.”

This is illustrative language only. Your actual lease language controls your rights.

Red Flags to Watch

⚠No co-tenancy clause despite being in a retail property with anchor tenants
⚠Co-tenancy only applies to the initial opening of the property, not ongoing operations
⚠Cure period before co-tenancy remedy kicks in exceeds 12 months
⚠Reduced rent during co-tenancy failure is not low enough to offset lost traffic
⚠No termination right even if the co-tenancy condition is never cured

Free scan · No account required

Anchor Tenant Left? Check Your CAM Charges.

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

Find My Overcharges See a sample report first

Negotiation Tips

✓Define anchor tenants by name and by minimum square footage threshold
✓Include both a reduced rent remedy (kicks in after 90-180 days) and a termination right (after 12 months)
✓Negotiate that the co-tenancy condition also applies to overall property occupancy (e.g., 70% occupied)
✓Ensure CAM obligations are also reduced proportionally during a co-tenancy failure, not just base rent

Key Data

15-25%
Retail tenants may see a 15-25% decline in foot traffic when an anchor tenant closes [industry estimate]
Source: ICSC / Retail Property Research (2024)

Explore Other Lease Clauses

Audit Rights Clause CAM Cap Clause CAM Exclusion Clause Gross-Up Provision Management Fee Clause Pro-Rata Share Definition Clause Base Year Stop Clause Controllable vs Non-Controllable Expense Clause Capital Expenditure Exclusion Clause Self-Help Remedy Clause Reconciliation Statement Deadline Clause Operating Expense Definition Clause

Free scan · No account required

Anchor Tenant Left? Check Your CAM Charges.

Upload two PDFs. 14 detection rules. Under 15 minutes. Free.

Find My Overcharges See a sample report first

Related Guides

NNN LeasesOverview

Triple-Net Lease Overcharges: Patterns and Recovery

NNN LeasesOverview

NNN Lease Audit: What to Review and When to Dispute

CAM OverchargesGuide

Percentage Rent Breakpoint Errors: The $12,000 Miscalculation

IndustriesGuide

CAM Audit Services for Retail Tenants: Shopping Centers, Strip Malls, and Anchor Disputes

Explore Related Resources

CAM Line ItemParking Lot Maintenance & Repair CAM Line ItemLandscaping & Grounds Care Lease TypeRetail Lease Lease TypeRetail Net Lease (NNN Retail)Detection RulePro-Rata Share Error Detection RuleGross-Up Violation

Next Best Step

Turn this risk into an audit

Walk through the full audit steps before you upload your lease and CAM statement.

What is a CAM audit?

Review the audit process before you upload your lease and reconciliation.

See a sample report

See the output and proof structure before you commit.

Start Free Audit

Run the free audit when you want documented findings.

Ready to skip the reading and document the overcharge directly?

Find My Overcharges

Related Resources

Detection RulePro-Rata Share Error Detection RuleGross-Up Violation CAM Line ItemParking Lot Maintenance & Repair CAM Line ItemLandscaping & Grounds Care Lease TypeRetail Lease

Frequently asked questions

Need to extract lease terms before your audit?

A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.

Go to lextract.io

This page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.