Exclusivity Clause

For healthcare tenants, an exclusivity clause is one of the most strategically important lease provisions. It prevents a landlord from leasing space in the same building or complex to a directly competing practice — protecting the tenant's patient base and referral relationships. For example, a dental practice with an exclusivity clause can prevent the landlord from leasing to another general dentist in the same MOB. The scope of exclusivity should be clearly defined in the lease: which specialty is excluded, whether sub-specialties are included, and what the remedy is if the landlord violates the clause. Tenants should also negotiate that the exclusivity applies to lease renewals and extensions, not just the initial term.

Without an exclusivity clause, a landlord can legally lease the suite next door to your direct competitor. For healthcare practices where location and specialty proximity directly affect patient volume, this protection is essential.

A family medicine practice secures an exclusivity clause preventing the landlord from leasing any suite in the building to another primary care or internal medicine provider. When a competing group approaches the landlord, the lease clause blocks the deal.