Permitted Uses

Permitted uses of the premises can be very important to both the landlord and the tenant. Typically, the landlord will require that the uses of the premises be restricted to protect its investment. For example, landlords who rent office space will limit the number of a law offices in a building. A restriction on use may increase the rent because it limits the kind of future tenant. 

Typically, the tenant will want to leave the list of permitted uses as broad as possible. This gives the tenant flexibility if it wants to assign the lease or sublet it another tenant. The class of tenants who will be interested increases if the permitted uses are broadly defined.

A landlord may wish to restrict the hours of operation for a particular business. Especially if the landlord owns other premises on the same property or on adjoining properties. 

An example of a permitted uses clause is:

Tenant may use the Premises for the following permitted uses only: operation of a ____________________. Tenant shall maintain hours of operation consistent with industry standards throughout the Term. Tenant shall not use the Premises for any other purpose without the prior written consent of Landlord. Landlord may withhold consent to any proposed use in Landlord’s sole discretion.