THE RELOCATION CLAUSE: The Most Misunderstood Risk in Leases.
- Renee Ervanian
- May 14
- 2 min read
Over 90 percent of Phoenix multi-tenant office and industrial leases include a Relocation Clause. Most tenants have no idea how much disruption and cost this clause can create until it's too late.
WHY THIS CLAUSE EXISTS
In multi-tenant buildings, landlords want flexibility. If a neighboring tenant wants to expand or a full-floor tenant is secured, the landlord can trigger the Relocation Clause and move a tenant to another suite. On paper, it sounds harmless: "We'll move you to a comparable suite and cover your moving costs." In reality, this can mean downtime, operational disruption, lost productivity and income, and a space that is "comparable" in the landlord's opinion.
THE BEST NEGOTIATION MOVE | NEGOTIATING TENANT PROTECTIONS.
Ask for the Relocation Clause to be deleted entirely. If this clause cannot be deleted, tenant protections must be added. "Comparable" should be tied to specific, measurable criteria, including:
Same or better floor location, window line, views, floor plan, and layout efficiency.
Same or better HVAC zoning, parking allocation, and signage rights.
Same or better suite colors and interiors, including fresh paint, new flooring, and all tenant improvements replicated.
THE LANDLORD PAYS ALL RELOCATION COSTS UPFRONT, TO INCLUDE.
Moving company fees, packing, and unpacking.
IT-Telecom disconnect and reconnect.
New cabling.
Furniture disassembly/reassembly.
Security and lock system transfer.
Printing new stationery, business cards, marketing materials, and address updates, with a notice sent out to all clients and vendors.
Change the address notifications on websites and social media outlets.
Temporary downtime costs.
Any increase in base rent, tax, or operating expenses in the new suite.
TENANT APPROVAL OF NEW SUITE, AND TIMING OF RELOCATION
The Tenant should have the right to accept or reject the proposed suite if it is not truly comparable to avoid being forced to a downgrade.
Relocation should not be allowed during the Crucial Business Period, such as tax months (CPA), scheduled trial (legal).
Only one Relocation should be allowed during a lease period.
A Minimum Written Notice Period of 90 - 120 days before any relocation can occur.
Without protection, Tenants risk loss of time, money, and operational stability.
About the Author
Renee Ervanian is the Managing Broker of Core Commercial, LLC, specializing in Metro Phoenix tenant and buyer representation, owner-user sales, acquisitions, and family legacy portfolios. With 20+ years of experience advising office, industrial, and flex users across the Valley, she is known for her deep submarket expertise, negotiation strategy, and tenant-side advocacy. Renee publishes a daily Phoenix tenant-representation micro-analysis to help businesses avoid costly lease mistakes and negotiate from a position of strength.
Credibility & Compliance
Core Commercial LLC is an independent Phoenix commercial real estate brokerage focused solely on representing tenants, buyers, owner-user buildings, and family legacy portfolios. Insights reflect Phoenix market conditions and lease structures. For direct tenant, buyer representation support, contact:
Renee Ervanian |
Managing Broker, Core Commercial LLC
Phoenix Metro Office & Industrial Representation
602-330-7482
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