Commercial Leases: Should New York and New Jersey Landlords Be Afraid of the Dark?


When negotiating a commercial lease, there are often several provisions on which landlords and tenants will not agree. Because they are largely tenant friendly, “go dark” provisions generally fall into this category.

In most cases, a go dark provision allows the tenant to cease operations in its leased space. Provided the tenant continues to pay rent to landlord, it is not considered to be in default.

For tenants, the provision is advantageous because it allows the flexibility to close temporarily or close altogether without incurring the expense and potential liability of default. However, for landlords, go dark provisions mean empty retail space and possible loss of rental income...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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