REALWorld Law

Commercial leases

Use by the tenant

Can restrictions be imposed by the landlord on how a tenant uses the real estate and are there any regulations and/or laws which impose further restrictions?

United States

United States

A lease will commonly limit the purposes for which a tenant can use the leased premises. Typically, the lease will specify certain permitted uses (e.g., office use) and will expressly prohibit other uses. In addition, localities commonly impose zoning laws which limit the lawful uses of property within a given area.  In addition, the underlying real estate of a leased premises may be subject to covenants, conditions and restrictions (so-called “CC&Rs”), which are recorded documentation that may limit how a leased premises can be used.  Zoning laws and CC&Rs vary in each local jurisdiction and advice from local counsel should be obtained regarding the applicable zoning laws and CC&Rs affecting the permitted uses for any particular lease.