Go-Dark Provisions
A go-dark provision allows a commercial tenant to cease operations while continuing to pay rent. Without this clause, most leases require continuous operation. These provisions significantly impact shopping centers and retail developments.
Key Issues
- Foot traffic: Dark storefronts reduce customer traffic
- Co-tenancy: Other tenants may trigger rent reduction or termination
- Percentage rent: Landlord loses variable income component
- Property value: Dark spaces reduce refinancing and sale value
- CAM charges: Costs shift to remaining tenants
Landlord Protections
- Continuous operation clauses
- Specific use requirements
- Penalties for going dark (increased rent, fees)
- Recapture rights to take back the space
- Courts may award damages but rarely specific performance
Related Terms
- Contract — Lease agreement provisions
- Estate for Years — The leasehold interest
- Equity — Property value affected by dark spaces
Barnes Walker Commercial Leasing
Barnes Walker's attorneys negotiate go-dark provisions and co-tenancy clauses in Florida commercial leases. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC