Go-Dark Clause
A go-dark clause addresses whether a retail tenant can stop operating but continue paying rent. Most single-tenant NNN leases permit the tenant to go dark; landlord-favorable leases include continuous-operation requirements.
What it means
Retail leases handle cessation of operations differently. A true go-dark right allows the tenant to close the physical store while continuing to pay contractual rent through the lease term — common in single-tenant NNN. Continuous-operation clauses, more landlord-favorable, require the tenant to actually operate the store; ceasing operations is a lease default.
Go-dark dynamics matter in multi-tenant retail with co-tenancy clauses. A dark anchor, even one still paying rent, can trigger co-tenancy rent reductions among other tenants. Single-tenant NNN with just a go-dark provision is straightforward — rent continues.
Related terms
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