Relocation Clause

A relocation clause gives the landlord the right to move a tenant from its current suite to comparable space elsewhere in the building or complex, typically to accommodate a larger tenant or reconfigure the property. For most commercial tenants this is an inconvenience; for a healthcare practice, it can be a serious problem. A medical or dental office has a location-bound patient base, signage, and an expensive buildout tuned to a specific suite — being forced to move mid-lease can mean lost patients, new buildout costs, and operational disruption. Tenants should resist an unrestricted relocation clause and, where a landlord insists, narrow it sharply: require that the landlord pay all moving and re-buildout costs, guarantee truly comparable space (size, visibility, floor), provide long advance notice, and reimburse for updated signage and marketing. Some practices negotiate the clause out entirely for the first several years or for the life of the lease.

A relocation clause can force a practice out of the suite its patients know and its buildout was designed for. Narrowing or removing it protects location, visibility, and the buildout investment.

A dermatology practice with a ground-floor, street-visible suite negotiates its relocation clause so the landlord may relocate it only to comparable ground-floor space, must cover all costs, and must give twelve months’ notice — protecting its visibility and patient access.